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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08727
SunAmerica Senior Floating Rate Fund, Inc.
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(Exact name of registrant as specified in charter)
Harborside Financial Center, 3200 Plaza 5, Jersey City, NJ 07311
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(Address of principal executive offices) (Zip code)
John T. Genoy
Senior Vice President
SunAmerica Asset Management, LLC
Harborside Financial Center 3200 Plaza 5
Jersey City, NJ 07311
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(Name and address of agent for service)
Registrant's telephone number, including area code: (201) 324-6414
Date of fiscal year end: December 31
Date of reporting period: December 31, 2014
================================================================================
Item 1. Reports to Stockholders
[GRAPHIC]
ANNUAL REPORT 2014
SUNAMERICA
Senior Floating Rate Fund
[LOGO]
TABLE OF CONTENTS
SHAREHOLDERS' LETTER........................................ 2
EXPENSE EXAMPLE............................................. 4
STATEMENT OF ASSETS AND LIABILITIES......................... 6
STATEMENT OF OPERATIONS..................................... 7
STATEMENT OF CHANGES IN NET ASSETS.......................... 8
FINANCIAL HIGHLIGHTS........................................ 9
PORTFOLIO OF INVESTMENTS.................................... 10
NOTES TO FINANCIAL STATEMENTS............................... 20
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM..... 27
DIRECTORS AND OFFICERS INFORMATION.......................... 28
SHAREHOLDER TAX INFORMATION................................. 31
COMPARISON: FUND VS. INDEX.................................. 33
DECEMBER 31, 2014 ANNUAL REPORT
SHAREHOLDERS' LETTER -- (unaudited)
Dear Shareholders:
We are pleased to present this annual report for the SunAmerica Senior Floating
Rate Fund, Inc. (the "Fund") for the 12 months ended December 31, 2014.
Predominant year-long fixed income trends included falling U.S. Treasury yields
and U.S. dollar strength. Markets more broadly were impacted by the
accelerating decline in oil prices and heightened vulnerabilities in select
emerging market countries, including Greece, Brazil and Russia. Falling
commodity prices pushed inflation lower across the globe, stirring fears of
deflation in some regions. Central bank monetary policy and economic growth in
the U.S. increasingly diverged from that in other parts of the world. Amidst
this backdrop, many riskier assets performed strongly. Floating rate loans, as
represented by the S&P/LSTA Leveraged Loan Index ("LLI")/1/, returned 1.60%
during the annual period, with its returns weighed upon in part by a less
supportive technical, or supply/demand, backdrop. The LLI underperformed the
broad U.S. fixed income market, as measured by the Barclays U.S. Aggregate Bond
Index/2/, which returned 5.97% for the same 12-month period ended December 31,
2014.
During 2014, credit quality began to degrade slightly with the entry of some
lower-quality first-time issuers into the floating rate loan market, but the
underlying credit fundamentals of bank loan issuers remained strong. The
default rate for bank loans, examined by principal amount, ended the annual
period at 3.24%, up from 1.67% at the end of 2013, primarily due to the default
of Energy Future Holdings (formerly TXU), a widely anticipated default that
occurred during the second quarter of 2014. Energy Future Holdings is a
non-regulated retail electric provider in Texas that filed for bankruptcy at
the end of April 2014. Excluding the Energy Future Holdings default, the
default rate finished the annual period at just 0.34%, well below the
historical average./3/
The sector's technicals, or supply and demand factors, eased during the annual
period. Bank loan mutual funds experienced withdrawals totaling net outflows in
2014 of $20.7 billion./4/ Despite these retail mutual fund outflows, issuance
of collateralized loan obligations ("CLOs"), one of the main sources of demand
for bank loans, remained robust, with a record $122 billion in new CLOs issued
during 2014. In terms of quality, as measured by the LLI, lower-quality loans
outperformed their higher-quality counterparts. For the annual period ended
December 31, 2014, loans rated CCC returned 6.09%, while loans rated BB
returned 1.52%.
All but two industries within the LLI generated positive absolute returns for
the annual period as a whole. The strongest performing industries were
publishing, media and forest products. These industries posted returns for the
annual period of 7.37%, 4.32% and 3.74%, respectively. The weakest performing
industries were oil and gas, minerals and utilities, which generated returns of
-10.02%, -4.57% and 0.70%, respectively, for the annual period.
On the following pages, you will find a brief discussion regarding the Fund's
annual results. You will also find financial statements and portfolio
information for the Fund for the annual period ended December 31, 2014.
2
DECEMBER 31, 2014 ANNUAL REPORT
SHAREHOLDERS' LETTER -- (unaudited) (continued)
As always, we remain diligent in the management of your assets. If you have any
questions, or require additional information on this or other SunAmerica Funds,
we invite you to visit www.safunds.com or call the Shareholder Services
Department at 800-858-8850.
Sincerely,
THE SUNAMERICA SENIOR FLOATING RATE FUND PORTFOLIO MANAGER
Jeffrey W. Heuer
Wellington Management
--------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
/1/The S&P/LSTA Leveraged Loan Index (LLI) reflects the market-weighted
performance of U.S. dollar-denominated institutional leveraged loan portfolios.
The LLI is the only domestic leveraged loan index that utilized real-time
market weightings, spreads and interest payments.
/2/The Barclays U.S. Aggregate Bond Index represents securities that are U.S.
domestic, taxable and dollar denominated. The index covers components for
government and corporate securities, mortgage pass-through securities and
asset-backed securities.
Indices are not managed and an investor cannot invest directly in an index.
/3/Source: S&P Leveraged Commentary & Data.
/4/Source: Lipper, Inc.
The Fund is not a money market fund and its net asset value may fluctuate.
Investments in loans involve certain risks including nonpayment of principal
and interest; collateral impairment; non-diversification and borrower industry
concentration; and lack of an active trading market, in certain cases, which
may impair the Fund's ability to obtain full value for loans sold. The Fund may
invest all or substantially all of its assets in loans or other securities
(e.g., unsecured loans or high yield securities) that are rated below
investment grade, or in comparable unrated securities. Credit risks include the
possibility of a default on the loan or bankruptcy of the borrower. The value
of these loans is subject to a greater degree of volatility in response to
interest rate fluctuations.
3
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
EXPENSE EXAMPLE -- DECEMBER 31, 2014 -- (UNAUDITED)
DISCLOSURE OF PORTFOLIO EXPENSES IN SHAREHOLDER REPORTS
As a shareholder of the SunAmerica Senior Floating Rate Fund, Inc. (the
"Fund"), you may incur two types of costs: (1) transaction costs, including
sales charges on purchase payments and contingent deferred sales charges and
(2) ongoing costs, including management fees, distribution and account
maintenance fees, and other Fund expenses. The example set forth below is
intended to help you understand your ongoing costs (in dollars) of investing in
the Fund and to compare these costs with the ongoing costs of investing in
other mutual funds. The Example is based on an investment of $1,000 invested at
July 1, 2014 and held until December 31, 2014.
ACTUAL EXPENSES
The "Actual" section of the table provides information about actual account
values and actual expenses. You may use the information in these columns,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the column under the heading entitled "Expenses Paid During the Six
Months Ended December 31, 2014" to estimate the expenses you paid on your
account during this period. For shareholder accounts in Class A and Class C,
the "Expenses Paid During the Six Months Ended December 31, 2014" column and
the "Annualized Expense Ratio" column do not include small account fees that
may be charged if your account balance is below $500 ($250 for retirement plan
accounts). In addition, the "Expenses Paid During the Six Months Ended December
31, 2014" column and the "Annualized Expense Ratio" column do not include
administrative or other fees that may apply to qualified retirement plan
accounts and accounts held through financial institutions. See the Fund's
prospectus, your retirement plan documents and/or materials from your financial
adviser, for a full description of these fees. Had these fees been included,
the "Expenses Paid During the Six Months Ended December 31, 2014" column would
have been higher and the "Ending Account Value" column would have been lower.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" section of the table provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an annual rate of return of 5% before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in this Fund and other funds. To do so, compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of
other funds. For shareholder accounts in Class A and Class C, the "Expenses
Paid During the Six Months Ended December 31, 2014" column and the "Annualized
Expense Ratio" column do not include small account fees that may be charged if
your account balance is below $500 ($250 for retirement plan accounts). In
addition, the "Expenses Paid During the Six Months Ended December 31, 2014"
column and the "Annualized Expense Ratio" column do not include administrative
or other fees that may apply to qualified retirement plan accounts and accounts
held through financial institutions. See the Fund's prospectus, your retirement
plan document and/or materials from your financial adviser for full description
of these fees. Had these fees been included, the "Expenses Paid During the Six
Months Ended December 31, 2014" column would have been higher and the "Ending
Account Value" column would have been lower.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, including sales
charges on purchase payments, contingent deferred sales charges and
administrative fees, if applicable to your account. Please refer to the Fund's
prospectus, qualified retirement plan document and/or materials from your
financial adviser, for more information. Therefore, the "Hypothetical" example
is useful in comparing ongoing costs only and will not help you determine the
relative total costs of owning different funds. In addition, if these
transaction costs and other fees were included, your costs would have been
higher.
4
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
EXPENSE EXAMPLE -- DECEMBER 31, 2014 -- (UNAUDITED) (CONTINUED)
ACTUAL HYPOTHETICAL
---------------------------------------------------- ----------------------------------------------------
ENDING ENDING ACCOUNT
ACCOUNT VALUE EXPENSES PAID VALUE USING EXPENSES PAID
BEGINNING USING ACTUAL DURING THE BEGINNING A HYPOTHETICAL 5% DURING THE
ACCOUNT VALUE RETURNS AT SIX MONTHS ENDED ACCOUNT VALUE ANNUAL RETURN AT SIX MONTHS ENDED
AT JULY 1, 2014 DECEMBER 31, 2014 DECEMBER 31, 2014* AT JULY 1, 2014 DECEMBER 31, 2014 DECEMBER 31, 2014*
--------------- ----------------- ------------------ --------------- ----------------- ------------------
Senior Floating
Rate Fund#
Class A.......... $1,000.00 $982.91 $7.25 $1,000.00 $1,017.90 $7.38
Class C.......... $1,000.00 $982.68 $8.75 $1,000.00 $1,016.38 $8.89
ANNUALIZED
EXPENSE
RATIO*
----------
Senior Floating
Rate Fund#
Class A.......... 1.45%
Class C.......... 1.75%
--------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 184 days then divided
by 365 days (to reflect the one-half year period). These ratios do not
reflect transaction costs, including sales charges on purchase payments,
contingent deferred sales charges, small account fees and administrative
fees, if applicable to your account. Please refer to your Prospectus, your
qualified retirement plan document and/or materials from your financial
advisor for more information.
# During the stated period, the investment adviser either waived a portion of
or all of the fees and assumed a portion of or all expenses for the Fund. As
a result, if these fees and expenses had not been waived or assumed, the
"Actual/Hypothetical Ending Account Value" would have been lower and the
"Actual/Hypothetical Expenses Paid During the Six Months Ended December 31,
2014" and the "Annualized Expense Ratio" would have been higher.
5
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES -- DECEMBER 31, 2014
ASSETS:
Investments at value (unaffiliated)*............................................ $360,091,984
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Receivable for:
Fund shares sold............................................................... 942,935
Dividends and interest......................................................... 2,584,766
Investments sold............................................................... 13,002,713
Prepaid expenses and other assets............................................... 5,928
Due from investment adviser for expense reimbursements/fee waivers.............. 111,318
------------
Total assets................................................................... 376,739,644
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LIABILITIES:
Payable for:
Fund shares redeemed........................................................... 3,073,428
Investments purchased.......................................................... 1,526,843
Investment advisory and management fees........................................ 274,370
Distribution and account maintenance fees...................................... 188,133
Administration fees............................................................ 64,557
Transfer agent fees and expenses............................................... 80,386
Directors' fees and expenses................................................... 472
Other accrued expenses......................................................... 198,324
Line of credit................................................................. 2,391,479
Dividends payable............................................................... 292,529
Due to custodian................................................................ 509,209
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Total liabilities.............................................................. 8,599,730
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Net Assets................................................................... $368,139,914
============
NET ASSETS REPRESENTED BY:
Common stock, $.01 par value.................................................... $ 457,371
Additional paid-in capital...................................................... 438,219,479
------------
438,676,850
Accumulated undistributed net investment income (loss).......................... (228,577)
Accumulated undistributed net realized gain (loss) on investments............... (56,891,428)
Unrealized appreciation (depreciation) on investments........................... (13,416,931)
------------
Net Assets................................................................... $368,139,914
============
CLASS A:
Net assets...................................................................... $150,965,765
Shares outstanding.............................................................. 18,748,292
Net asset value and redemption price per share.................................. $ 8.05
Maximum sales charge (3.75% of offering price).................................. 0.31
------------
Maximum offering price to public................................................ $ 8.36
============
CLASS C:
Net assets...................................................................... $217,174,149
Shares outstanding.............................................................. 26,988,840
Net asset value, offering and redemption price per share (excluding any
applicable contingent deferred sales charges).................................. $ 8.05
============
*COST
Investment securities (unaffiliated)........................................... $373,508,915
============
See Notes to Financial Statements
6
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED DECEMBER 31, 2014
INVESTMENT INCOME:
Interest (unaffiliated)........................................................ $ 20,672,883
Dividends (unaffiliated)....................................................... 18,196
Facility and other fee income (Note 2)......................................... 1,206,236
------------
Total investment income*.................................................... $ 21,897,315
------------
EXPENSES:
Investment advisory and management fees........................................ 3,589,160
Administration fees............................................................ 844,508
Distribution and account maintenance fees:
Class A...................................................................... 643,941
Class C...................................................................... 1,787,033
Transfer agent fees and expenses:
Class A...................................................................... 415,789
Class C...................................................................... 536,937
Registration fees:
Class A...................................................................... 32,384
Class C...................................................................... 30,505
Accounting service fees........................................................ 33,151
Custodian and accounting fees.................................................. 123,109
Reports to shareholders........................................................ 105,374
Audit and tax fees............................................................. 99,514
Legal fees..................................................................... 17,118
Directors' fees and expenses................................................... 51,955
Interest expense............................................................... 1,683
Other expenses................................................................. 96,838
------------
Total expenses before fee waivers and expense reimbursements................ 8,408,999
Fees waived and expenses reimbursed by investment adviser (Note 5).......... (1,571,501)
------------
Net expenses................................................................ 6,837,498
------------
Net investment income (loss)................................................... 15,059,817
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments (unaffiliated)......................... (174,093)
Change in unrealized appreciation (depreciation) on investments (unaffiliated). (14,110,473)
------------
Net realized and unrealized gain (loss) on investments......................... (14,284,566)
------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $ 775,251
============
*Net of foreign withholding taxes on interest and dividends of................. $ 5,976
------------
See Notes to Financial Statements
7
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2014 2013
------------ ------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss)......................................... $ 15,059,817 $ 14,794,754
Net realized gain (loss) on investments (unaffiliated)............... (174,093) (1,295,657)
Net unrealized gain (loss) on investments (unaffiliated)............. (14,110,473) 4,909,000
------------ ------------
Increase (decrease) in net assets resulting from operations........... 775,251 18,408,097
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)...................................... (6,863,837) (6,706,870)
Net investment income (Class C)...................................... (8,185,035) (8,083,805)
------------ ------------
Total distributions to shareholders................................... (15,048,872) (14,790,675)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS (NOTE 3)................................................ (54,871,485) 90,085,199
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS............................... (69,145,106) 93,702,621
NET ASSETS:
Beginning of period................................................... 437,285,020 343,582,399
------------ ------------
End of period+........................................................ $368,139,914 $437,285,020
============ ============
+Includes accumulated undistributed net investment income (loss)...... $ (228,577) $ (239,522)
============ ============
See Notes to Financial Statements
8
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
FINANCIAL HIGHLIGHTS
NET GAIN
(LOSS) ON
NET INVESTMENTS DIVIDENDS NET NET RATIO OF
ASSET (BOTH DIVIDENDS FROM NET ASSET ASSETS, EXPENSES
VALUE, NET REALIZED TOTAL FROM FROM NET REALIZED TOTAL VALUE, END OF TO AVERAGE
PERIOD BEGINNING INVESTMENT AND INVESTMENT INVESTMENT GAINS ON DISTRI- END OF TOTAL PERIOD NET
ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME INVESTMENTS BUTIONS PERIOD RETURN(2) (000'S) ASSETS(3)
---------- --------- ---------- ----------- ---------- ---------- ----------- ------- ------ --------- -------- ----------
CLASS A
-------
12/31/10 $7.83 $0.34 $ 0.46 $ 0.80 $(0.36) $ -- $(0.36) $8.27 10.33% $255,026 1.45%
12/31/11 8.27 0.36 (0.33) 0.03 (0.34) -- (0.34) 7.96 0.36 160,949 1.45
12/31/12 7.96 0.36 0.31 0.67 (0.37) -- (0.37) 8.26 8.51 146,103 1.45
12/31/13 8.26 0.33 0.08 0.41 (0.33) -- (0.33) 8.34 5.08 195,309 1.45
12/31/14 8.34 0.31 (0.29) 0.02 (0.31) -- (0.31) 8.05 0.20 150,966 1.45
CLASS C
-------
12/31/10 $7.82 $0.32 $ 0.45 $ 0.77 $(0.33) $ -- $(0.33) $8.26 10.01% $190,839 1.75%
12/31/11 8.26 0.33 (0.32) 0.01 (0.32) -- (0.32) 7.95 0.06 198,778 1.75
12/31/12 7.95 0.34 0.30 0.64 (0.34) -- (0.34) 8.25 8.20 197,480 1.75
12/31/13 8.25 0.30 0.10 0.40 (0.31) -- (0.31) 8.34 4.89 241,976 1.75
12/31/14 8.34 0.29 (0.30) (0.01) (0.28) -- (0.28) 8.05 (0.10) 217,174 1.75
RATIO OF
NET
INVESTMENT
INCOME TO
PERIOD AVERAGE PORTFOLIO
ENDED NET ASSETS(3) TURNOVER
---------- ------------- ---------
12/31/10 4.34% 41%
12/31/11 4.27 63
12/31/12 4.41 61
12/31/13 3.98 84
12/31/14 3.73 65
12/31/10 4.03% 41%
12/31/11 4.02 63
12/31/12 4.12 61
12/31/13 3.68 84
12/31/14 3.44 65
--------
(1)Calculated based upon average shares outstanding.
(2)Total return does not reflect sales load but does include expense
reimbursements.
(3)Net of the following expense waivers and/or reimbursements, if applicable
(based on average daily net assets) (See Note 5):
12/31/10 12/31/11 12/31/12 12/31/13 12/31/14
-------- -------- -------- -------- --------
Class A. 0.38% 0.33% 0.35% 0.34% 0.32%
Class C. 0.48 0.44 0.44 0.43 0.41
See Notes to Financial Statements
9
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO PROFILE -- DECEMBER 31, 2014 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Media....................................................... 9.6%
Commercial Services & Supplies.............................. 6.2
Hotels, Restaurants & Leisure............................... 5.7
Oil, Gas & Consumable Fuels................................. 5.7
Health Care Providers & Services............................ 5.6
Software.................................................... 4.4
Food & Staples Retailing.................................... 3.7
Insurance................................................... 3.3
IT Services................................................. 3.0
Chemicals................................................... 3.0
Machinery................................................... 3.0
Metals & Mining............................................. 2.9
Diversified Telecommunication Services...................... 2.8
Energy Equipment & Services................................. 2.4
Food Products............................................... 2.2
Pharmaceuticals............................................. 2.2
Specialty Retail............................................ 2.1
Wireless Telecommunication Services......................... 2.0
Semiconductors & Semiconductor Equipment.................... 1.9
Diversified Financial Services.............................. 1.9
Industrial Conglomerates.................................... 1.5
Containers & Packaging...................................... 1.5
Auto Components............................................. 1.4
Internet & Catalog Retail................................... 1.3
Multi Utilities............................................. 1.2
Multiline Retail............................................ 1.2
Biotechnology............................................... 1.2
Aerospace & Defense......................................... 1.1
Real Estate Management & Development........................ 1.1
Road & Rail................................................. 0.9
Tech Hardware, Storage & Peripheral......................... 0.8
Consumer Finance............................................ 0.8
Paper & Forest Products..................................... 0.8
Building Products........................................... 0.7
Leisure Equipment & Products................................ 0.6
Electronic Equipment, Instruments & Components.............. 0.6
Internet Software & Services................................ 0.6
Professional Services....................................... 0.6
Industrial Power Producers & Energy Traders................. 0.6
Pooled Vehicle.............................................. 0.5
Capital Markets............................................. 0.5
Health Care Equipment & Supplies............................ 0.5
Real Estate Investment Trusts............................... 0.5
Life Sciences Tools & Services.............................. 0.4
Construction Materials...................................... 0.4
Construction & Engineering.................................. 0.4
Distributors................................................ 0.4
Automobiles................................................. 0.3
Household Durables.......................................... 0.3
Health Care Technology...................................... 0.3
Communications Equipment.................................... 0.3
Airlines.................................................... 0.2
Diversified Consumer Services............................... 0.2
Electrical Equipment........................................ 0.2
Gas Utilities............................................... 0.2
Banks....................................................... 0.1
----
97.8%
====
CREDIT QUALITY+#
BBB......................................................... 0.5%
BBB-........................................................ 2.0
BB+......................................................... 4.7
BB.......................................................... 6.4
BB-......................................................... 15.6
B+.......................................................... 20.3
B........................................................... 25.7
B-.......................................................... 8.5
CCC+........................................................ 9.2
CCC......................................................... 1.9
CCC-........................................................ 0.7
Not Rated@.................................................. 4.5
-----
100.0%
=====
--------
* Calculated as a percentage of net assets.
@ Represents debt issues that either have no rating, or the rating is
unavailable from the data source.
+ Source: Standard and Poor's
# Calculated as a percentage of total debt issues, excluding short-term
securities.
10
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2014
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------------------------------------
LOANS(3)(4) -- 90.5%
AEROSPACE & DEFENSE -- 1.1%
B.E. Aerospace, Inc............................ BTL-B Ba2 BB+ 4.00% 12/16/2021 $1,605,000 $ 1,599,983
DigitalGlobe, Inc.............................. BTL-B Ba2 BBB- 3.75 01/31/2020 1,876,575 1,856,635
Transdigm Group, Inc........................... BTL-C Ba3 B 3.75 02/28/2020 979,666 960,072
-----------
4,416,690
-----------
AIRLINES -- 0.2%
Delta Air Lines, Inc........................... BTL Ba1 BBB- 3.25 04/20/2017 1,079,767 1,067,394
-----------
AUTO COMPONENTS -- 1.4%
Affinia Group.................................. BTL-B2 B2 B 4.75 04/25/2020 938,745 927,596
American Tire Distributors, Inc................ 1st Lien B2 CCC+ 5.75 06/01/2018 1,276,697 1,273,505
Goodyear Tire & Rubber Co...................... 2nd Lien Ba1 BB 4.75 04/30/2019 500,000 497,374
MPG Holdco I, Inc.............................. BTL-B Ba3 NR 4.25 10/20/2021 1,503,778 1,492,498
UCI International, Inc......................... BTL-B Ba3 B 5.50 07/26/2017 1,170,800 1,162,018
-----------
5,352,991
-----------
AUTOMOBILES -- 0.3%
Chrysler Group LLC............................. BTL-B Ba1 BB+ 3.50 05/24/2017 1,089,521 1,084,980
-----------
BIOTECHNOLOGY -- 1.2%
Ikaria, Inc.................................... BTL B1 B- 5.00 02/12/2021 535,128 530,779
Ikaria, Inc.................................... 2nd Lien Caa1 CCC 8.75 02/12/2022 410,000 407,437
Medpace, Inc................................... BTL B2 B+ 4.75 04/01/2021 1,848,491 1,827,695
STHI Holding Corp.............................. BTL B2 B 4.50 08/06/2021 1,596,000 1,581,369
-----------
4,347,280
-----------
BUILDING PRODUCTS -- 0.7%
Interline Brands, Inc.......................... BTL B3 B 4.00 03/21/2021 1,083,740 1,040,391
Nortek, Inc.................................... BTL Ba3 BB- 3.75 10/30/2020 1,616,875 1,591,611
-----------
2,632,002
-----------
CAPITAL MARKETS -- 0.5%
AlixPartners LLC............................... BTL-B2 B1 B+ 4.00 07/10/2020 679,467 668,425
AlixPartners LLC............................... 2nd Lien Caa1 B- 9.00 07/09/2021 285,000 286,900
Walter Investment Management Co................ Tranche B B2 B+ 4.75 12/19/2020 1,054,151 948,736
-----------
1,904,061
-----------
CHEMICALS -- 3.0%
Al Chem & Cy SCA (Monarch)..................... BTL-B B1 B+ 4.50 10/03/2019 496,027 489,827
Al Chem & Cy SCA (Monarch)..................... BTL-B1 B1 B+ 4.50 10/03/2019 257,364 254,147
Ferro Corp..................................... BTL-B Ba3 B+ 4.00 07/31/2021 1,022,438 1,006,462
Gates Global, Inc.............................. BTL B2 B+ 4.25 07/03/2021 2,927,663 2,841,923
Ineos U.S. Finance LLC......................... BTL-B Ba3 BB- 3.75 05/04/2018 1,500,314 1,453,698
Minerals Technologies, Inc..................... BTL-B Ba3 BB 4.00 05/07/2021 1,934,071 1,911,829
Solenis International LP....................... 1st Lien B2 B 4.25 07/31/2021 1,221,938 1,192,916
Univar, Inc.................................... BTL-B B3 B+ 5.00 06/30/2017 1,978,162 1,909,987
-----------
11,060,789
-----------
COMMERCIAL SERVICES & SUPPLIES -- 6.2%
ADS Waste Holdings, Inc........................ BTL B2 B+ 3.75 10/09/2019 988,560 957,255
ARG IH Corp.................................... BTL-B B3 B 4.75 11/15/2020 1,006,808 1,000,515
ATI Schools(5)(6)(8)(9)(11)(12)................ BTL-B NR NR 12.25 12/30/2014 1,232,969 0
ATI Schools(5)(6)(8)(9)(11)(12)................ BTL NR NR 13.25 06/30/2012 277,491 0
ATI Schools(5)(6)(8)(9)(11)(12)................ BTL NR NR 13.25 06/30/2012 17,142 0
Audio Visual Services Group, Inc............... BTL-B B1 B+ 4.50 01/24/2021 1,970,113 1,952,874
Brand Energy and Infrastructure Services, Inc.. BTL-B B1 B 4.75 11/26/2020 3,408,393 3,289,099
Brickman Group Holdings, Inc................... BTL B2 B 4.00 12/18/2020 3,707,248 3,600,665
Brickman Group Holdings, Inc................... 2nd Lien Caa1 CCC+ 7.50 12/18/2021 1,340,000 1,309,013
Fly Funding II SARL............................ BTL Ba3 BBB- 4.50 08/06/2019 1,408,672 1,399,868
Peak 10, Inc................................... 2nd Lien Caa2 CCC+ 8.25 06/17/2022 1,845,000 1,752,750
Peak 10, Inc................................... BTL B2 B 5.00 06/17/2021 457,700 449,690
11
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
---------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (CONTINUED)
Sedgwick CMS Holdings, Inc........................... 1st Lien B1 B 3.75% 03/01/2021 $1,094,225 $ 1,060,487
Sedgwick CMS Holdings, Inc........................... 2nd Lien Caa2 CCC+ 6.75 02/28/2022 2,565,000 2,404,688
ServiceMaster Co..................................... BTL-B B2 B+ 4.25 07/01/2021 1,066,883 1,045,812
WCA Waste Systems, Inc............................... BTL B1 B+ 4.00 03/23/2018 1,658,113 1,635,313
West Corp............................................ BTL-B10 Ba3 BB 3.25 06/30/2018 880,445 861,002
-----------
22,719,031
-----------
CONSTRUCTION & ENGINEERING -- 0.4%
Pike Corp............................................ 1st Lien B2 B+ 5.50 12/22/2021 1,320,000 1,318,350
-----------
CONSTRUCTION MATERIALS -- 0.4%
Quikrete Companies, Inc.............................. 2nd Lien B1 B+ 4.00 09/26/2020 955,240 940,911
Quikrete Companies, Inc.............................. 1st Lien B3 B- 7.00 03/26/2021 565,895 561,651
-----------
1,502,562
-----------
CONSUMER FINANCE -- 0.8%
TransFirst Holdings, Inc............................. 1st Lien B2 B 5.50 11/12/2021 880,000 872,300
TransFirst Holdings, Inc............................. 2nd Lien Caa2 CCC+ 9.00 11/12/2022 555,000 547,137
Vantiv LLC........................................... BTL-B Ba3 BB+ 3.75 06/13/2021 1,447,725 1,434,153
-----------
2,853,590
-----------
CONTAINERS & PACKAGING -- 1.5%
Ardagh Packaging Finance PLC......................... BTL Ba3 B+ 4.00 12/17/2019 655,050 641,130
BWAY Holding Corp.................................... BTL-B B2 B- 5.50-6.75 08/14/2020 2,203,925 2,187,396
Mauser Holding GmbH (CD&R)........................... 1st Lien B2 B 4.50 07/31/2021 1,177,050 1,153,509
Mauser Holding GmbH (CD&R)........................... 2nd Lien Caa2 CCC+ 8.25 07/31/2022 1,605,000 1,548,825
-----------
5,530,860
-----------
DISTRIBUTORS -- 0.4%
ABC Supply Co., Inc. (American Builders)............. BTL-B B1 BB+ 3.50 04/16/2020 1,338,063 1,294,158
-----------
DIVERSIFIED CONSUMER SERVICES -- 0.2%
Weight Watchers International, Inc................... BTL-F B1 B+ 4.00 04/02/2020 960,994 739,565
-----------
DIVERSIFIED FINANCIAL SERVICES -- 1.9%
ION Trading Technologies, Ltd........................ 2nd Lien Caa2 CCC+ 7.25 06/10/2022 2,345,000 2,216,025
Opal Acquisition, Inc................................ BTL-B B1 B 5.00 11/27/2020 2,757,150 2,720,962
Santander Asset Management........................... BTL Ba2 BB 4.25 12/17/2020 1,021,759 1,015,373
TransUnion LLC....................................... BTL Ba3 B+ 4.00 04/09/2021 1,010,293 993,875
-----------
6,946,235
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 1.8%
Altice Financing SA.................................. BTL B1 BB- 5.50 07/02/2019 2,935,350 2,891,320
Level 3 Financing, Inc............................... BTL-B2 Ba2 BB 4.00 08/01/2019 1,425,000 1,413,422
Level 3 Financing, Inc............................... Tranche B Ba2 BB 4.50 01/31/2022 1,300,000 1,300,407
XO Communications, Inc............................... BTL B2 BB- 4.25 03/19/2021 1,146,338 1,126,993
-----------
6,732,142
-----------
ELECTRICAL EQUIPMENT -- 0.2%
WireCo WorldGroup, Inc............................... BTL-B Ba2 B+ 6.00 02/15/2017 658,407 657,584
-----------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.6%
Ortho Clinical Diagnostics SA........................ BTL B1 B 4.75 06/30/2021 2,236,256 2,194,792
-----------
ENERGY EQUIPMENT & SERVICES -- 2.2%
Drillships Financing Holding, Inc.................... BTL-B B2 B+ 5.50 07/25/2021 1,001,500 804,956
EMG Utica LLC........................................ BTL B2 B 4.75 03/27/2020 690,000 677,925
Pacific Drilling SA.................................. BTL-B B1 B+ 4.50 06/04/2018 822,475 670,317
Paragon Offshore, Ltd................................ BTL-B Baa3 BB+ 3.75 07/18/2021 997,500 817,950
Pinnacle Holdco SARL................................. BTL B1 B+ 4.75 07/30/2019 1,633,329 1,537,371
Seadrill Partners Finco LLC.......................... BTL-B Ba3 BB- 4.00 02/21/2021 3,245,438 2,508,724
Shelf Drilling Midco, Ltd............................ BTL B1 B- 10.00 10/08/2018 1,240,000 930,000
-----------
7,947,243
-----------
12
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
------------------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 3.7%
Albertson's Holdings LLC................................. BTL-B4 Ba3 BB- 4.50% 08/25/2021 $3,080,000 $ 3,077,114
Albertson's Holdings LLC................................. BTL-B4 Ba3 BB- 4.50 08/25/2021 1,550,000 1,548,548
BJ's Wholesale Club, Inc................................. 1st Lien B3 B- 4.50 09/26/2019 1,082,359 1,061,163
Rite Aid Corp............................................ BTL B2 B+ 4.88 06/21/2021 2,230,000 2,227,213
Rite Aid Corp............................................ 2nd Lien B2 B+ 5.75 08/21/2020 1,055,000 1,057,638
Roundy's Supermarkets.................................... BTL-B B1 B 5.75 03/03/2021 1,218,091 1,135,870
Sprouts Farmers Market LLC............................... BTL-B Ba3 BB 4.00 04/23/2020 628,361 625,219
Stater Brothers Markets, Inc............................. BTL-B B1 B+ 4.75 05/12/2021 721,375 711,456
U.S. Foodservice......................................... BTL B2 B- 4.50 03/29/2019 2,192,613 2,177,265
-----------
13,621,486
-----------
FOOD PRODUCTS -- 2.2%
Arysta LifeScience Corp.................................. BTL B1 B 4.50 05/30/2020 846,406 839,705
H.J. Heinz Co............................................ BTL-B2 Ba2 BB 3.50 06/05/2020 1,968,852 1,953,733
Hearthside Food Solutions LLC............................ BTL B1 B 4.50 06/02/2021 1,736,275 1,723,253
Hostess Brands, Inc...................................... BTL-B NR B- 6.75 04/09/2020 1,086,788 1,103,089
Jacobs Douwe Egberts (Charger OpCo)...................... BTL-B Ba3 NR 3.50 07/23/2021 1,285,000 1,246,450
Pinnacle Operating Corp.................................. BTL-B2 B1 B+ 4.75 11/15/2018 1,407,726 1,390,129
-----------
8,256,359
-----------
GAS UTILITIES -- 0.2%
NGPL PipeCo LLC.......................................... BTL-B B3 CCC+ 6.75 09/15/2017 619,388 596,161
-----------
HEALTH CARE EQUIPMENT & SUPPLIES -- 0.5%
Immucor, Inc............................................. BTL-B2 B1 B+ 5.00 08/17/2018 1,826,813 1,802,836
-----------
HEALTH CARE PROVIDERS & SERVICES -- 5.0%
American Renal Holdings, Inc............................. 1st Lien Ba3 B 4.50 09/22/2019 2,046,302 2,007,933
American Renal Holdings, Inc............................. 2nd Lien Caa1 CCC+ 8.50 03/20/2020 1,879,617 1,851,423
CHS/Community Health Systems, Inc........................ BTL-D Ba2 BB 4.25 01/27/2021 2,831,400 2,821,963
DSI Renal, Inc. (Dialysis Newco)......................... 1st Lien B1 B 4.50 04/23/2021 567,150 562,187
DSI Renal, Inc........................................... 2nd Lien Caa2 CCC+ 7.75 10/22/2021 825,000 818,813
Healogics, Inc........................................... 1st Lien B2 B 5.25 07/01/2021 728,175 715,432
Inventiv Health, Inc..................................... BTL-B4 B2 NR 7.75 05/05/2018 1,100,000 1,091,750
MPH Acquisition Holdings LLC............................. BTL B1 B 3.75 03/31/2021 1,136,364 1,102,273
Surgery Center Holdings, Inc............................. 1st Lien B1 B 5.25 11/03/2020 1,230,000 1,196,175
Surgery Center Holdings, Inc............................. 2nd Lien Caa2 CCC+ 8.50 11/03/2021 3,000,000 2,895,000
U.S. Renal Care, Inc..................................... 1st Lien Ba3 B 4.25 07/03/2019 1,825,806 1,791,572
U.S. Renal Care, Inc..................................... BTL Caa1 CCC+ 8.50 01/03/2020 735,000 728,569
U.S. Renal Care, Inc..................................... 2nd Lien Caa1 CCC+ 10.25 12/27/2019 666,000 664,335
-----------
18,247,425
-----------
HEALTH CARE TECHNOLOGY -- 0.3%
IMS Health, Inc.......................................... BTL-B Ba3 BB- 3.50 03/17/2021 994,256 970,228
-----------
HOTELS, RESTAURANTS & LEISURE -- 5.7%
1011778 B.C. ULC......................................... BTL-B B1 B+ 4.50 12/12/2021 2,020,000 2,014,229
24 Hour Fitness Worldwide, Inc........................... BTL-B Ba3 NR 4.75 05/30/2021 1,988,753 1,914,175
Aristocrat Leisure, Ltd.................................. BTL-B Ba2 BB 4.75 10/20/2021 2,500,000 2,450,000
Caesars Entertainment Operating Co., Inc. (Harrah's)(16). BTL-B6 Caa3 CCC- 6.99 03/01/2017 3,023,792 2,653,377
Caesars Growth Properties Holdings LLC................... BTL B2 B+ 6.25 05/08/2021 1,092,381 1,004,990
California Pizza Kitchen, Inc............................ BTL B2 B- 5.25-6.50 03/29/2018 1,477,500 1,417,169
CityCenter Holdings LLC.................................. BTL-B B2 BB- 4.25 10/16/2020 1,136,820 1,125,452
Four Seasons Holdings, Inc............................... 2nd Lien Caa1 B- 6.25 12/27/2020 835,000 828,738
Hilton Worldwide Finance LLC............................. BTL-B2 Ba3 BB+ 3.50 10/26/2020 1,730,112 1,706,323
La Quinta Intermediate Holdings LLC...................... BTL-B B1 BB- 4.00 04/14/2021 1,245,794 1,227,107
SGMS Escrow Corp......................................... BTL-B2 Ba3 BB- 6.00 10/01/2021 1,080,000 1,062,257
Station Casinos, Inc..................................... BTL-B B1 B 4.25 03/02/2020 2,184,025 2,136,250
Town Sports International Holdings, Inc.................. BTL B1 B 4.50 11/15/2020 2,257,587 1,591,599
-----------
21,131,666
-----------
13
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
----------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES -- 0.3%
Apex Tool Group LLC.................................... BTL-B B2 B 4.50% 02/01/2020 $1,016,193 $ 983,167
-----------
INDUSTRIAL CONGLOMERATES -- 1.5%
American Rock Salt Co. LLC............................. BTL-B B3 B 4.75 05/20/2021 1,771,100 1,720,919
American Rock Salt Co. LLC............................. 2nd Lien Caa1 CCC 8.00 05/20/2022 1,785,000 1,767,150
Filtration Group Corp.................................. 1st Lien B1 B+ 4.50 11/21/2020 648,450 645,208
Filtration Group Corp.................................. 2nd Lien Caa1 B- 8.25 11/22/2021 790,000 788,683
Sequa Corp............................................. BTL-B B3 B- 5.25 06/19/2017 759,963 739,064
-----------
5,661,024
-----------
INDUSTRIAL POWER PRODUCERS & ENERGY TRADERS -- 0.3%
Calpine Corp........................................... BTL Ba3 BB 4.00 10/09/2019 1,012,491 997,514
-----------
INSURANCE -- 3.3%
Asurion Corp........................................... 1st Lien Ba3 B 5.00 05/24/2019 3,737,321 3,677,367
Asurion Corp........................................... 2nd Lien B3 CCC+ 8.50 03/03/2021 3,450,000 3,421,969
Compass Investments, Inc............................... BTL B1 B 4.25 12/27/2019 1,128,468 1,104,488
Cooper, Gay, Swett & Crawford, Ltd. (CGSC of Delaware). 1st Lien B2 B- 5.00 04/16/2020 896,350 822,401
Cooper, Gay, Swett & Crawford, Ltd. (CGSC of Delaware). 2nd Lien Caa2 CCC 8.25 10/16/2020 1,430,000 1,258,400
Hub International, Ltd................................. BTL B1 B 4.25 10/02/2020 1,009,204 977,918
National Financial Partners Corp....................... BTL-B B2 B 4.50 07/01/2020 1,066,531 1,055,865
-----------
12,318,408
-----------
INTERNET & CATALOG RETAIL -- 1.3%
Acosta, Inc............................................ BTL B1 B 5.00 09/26/2021 3,145,000 3,133,993
Lands' End, Inc........................................ BTL-B B1 B+ 4.25 04/04/2021 1,563,188 1,522,154
-----------
4,656,147
-----------
INTERNET SOFTWARE & SERVICES -- 0.6%
Dealertrack Technologies, Inc.......................... BTL-B Ba2 BB- 3.25 02/24/2021 1,073,274 1,053,151
Zayo Group LLC......................................... BTL-B B1 B 4.00 07/02/2019 1,114,744 1,103,195
-----------
2,156,346
-----------
IT SERVICES -- 2.7%
Ceridian Corp.......................................... BTL-B2 Ba3 B- 4.50 09/15/2020 529,843 520,571
Evertec, Inc........................................... BTL-B B1 BB- 3.50 04/17/2020 600,850 575,689
First Data Corp........................................ BTL-B B1 BB- 3.67 03/24/2018 6,218,681 6,080,707
First Data Corp........................................ BTL-1 B1 BB- 3.67 09/24/2018 2,170,000 2,121,854
MoneyGram International, Inc........................... BTL-B B1 BB- 4.25 03/27/2020 832,548 763,863
-----------
10,062,684
-----------
LEISURE EQUIPMENT & PRODUCTS -- 0.6%
SRAM LLC............................................... BTL-B B1 BB- 4.00-5.25 04/10/2020 2,362,029 2,279,358
-----------
LIFE SCIENCES TOOLS & SERVICES -- 0.4%
Pharmaceutical Product Development, Inc................ BTL-B Ba2 B+ 4.00 12/05/2018 1,664,873 1,652,386
-----------
MACHINERY -- 3.0%
Alliance Laundry Systems LLC........................... BTL B2 B 4.25 12/10/2018 708,577 699,130
Gardner Denver, Inc.................................... BTL B1 B 4.25 07/30/2020 1,846,675 1,726,641
Harbor Freight Tools USA, Inc.......................... BTL-B B1 B+ 4.75 07/26/2019 1,018,069 1,014,252
Husky International, Ltd............................... 1st Lien NR B 4.25 06/30/2021 463,232 448,756
Husky International, Ltd............................... 2nd Lien Caa1 CCC+ 7.25 06/30/2022 870,000 835,200
Navistar International Corp............................ BTL-B Ba3 B 5.75 08/17/2017 645,188 640,349
Paladin Brands Holding, Inc............................ BTL B2 BB- 6.75 08/16/2019 1,853,486 1,839,585
Rexnord Corp........................................... BTL-B B2 BB- 4.00 08/21/2020 3,887,037 3,797,635
-----------
11,001,548
-----------
MEDIA -- 9.1%
Advantage Sales & Marketing LLC........................ 1st Lien B1 B 4.25 07/25/2021 2,818,935 2,782,819
Advantage Sales & Marketing LLC........................ 2nd Lien Caa1 CCC+ 7.50 07/25/2022 2,525,000 2,485,863
Charter Communications Operating LLC................... BTL-G Baa3 BB+ 4.25 09/12/2021 1,960,000 1,967,350
Delta 2 (Lux) SARL..................................... BTL-B3 B2 B 4.75 07/31/2021 4,344,124 4,230,091
14
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
---------------------------------------------------------------------------------------------------------------------------
MEDIA (CONTINUED)
Delta 2 (Lux) SARL.................................. 2nd Lien Caa2 CCC+ 7.75% 07/31/2022 $2,495,000 $ 2,417,031
Getty Images, Inc................................... BTL-B B2 B 4.75 10/18/2019 1,864,169 1,718,143
Hicks Sports Group+(7)(9)........................... BTL-B NR NR 6.75 12/22/2011 1,101,919 165,288
Hoyts Cinemas Group (US FINCO)...................... 2nd Lien B3 CCC+ 8.25 11/20/2020 450,000 441,000
Interactive Data Corp............................... BTL B2 B+ 4.75 05/02/2021 3,098,948 3,071,832
ION Media Networks, Inc............................. BTL-B B1 B+ 4.75 12/18/2020 2,141,900 2,120,481
Media General, Inc.................................. BTL-B Ba3 BB+ 4.25 07/31/2020 1,949,767 1,924,582
Numericable Finance & Co. SCA....................... BTL-B1 Ba3 B+ 4.50 05/21/2020 1,249,238 1,244,554
Numericable Finance & Co. SCA....................... BTL-B2 Ba3 B+ 4.50 05/21/2020 1,080,762 1,076,709
Salem Communications Corp........................... BTL-B B2 B 4.50 03/16/2020 837,200 821,503
Tribune Co.......................................... BTL Ba3 BB+ 4.00 12/27/2020 1,048,385 1,030,038
Truven Health Analytics, Inc. (Wolverine)........... BTL-B B1 B 4.50 06/06/2019 1,111,030 1,076,310
Univision Communications, Inc....................... BTL-C4 B2 B+ 4.00 03/01/2020 4,992,112 4,872,302
-----------
33,445,896
-----------
METALS & MINING -- 1.9%
Ameriforge Group, Inc............................... BTL B1 B+ 5.00 12/19/2019 1,508,593 1,357,734
Crosby Worldwide, Ltd............................... 1st Lien B1 B 3.75 11/23/2020 1,295,360 1,217,639
Fortescue Metals Group, Ltd......................... BTL Baa3 BBB 3.75 06/30/2019 2,023,937 1,839,253
Novelis, Inc........................................ BTL-B Ba2 BB 3.75 03/10/2017 1,134,180 1,121,067
Signode Industrial Group U.S., Inc.................. BTL-B B1 B 3.75 05/01/2021 1,412,500 1,352,469
-----------
6,888,162
-----------
MULTI UTILITIES -- 1.2%
Energy Future Intermediate Holding Co. LLC(7)....... DIP NR NR 4.25 06/19/2016 1,215,000 1,214,241
Texas Competitive Electric Holdings Co. LLC+(7)(10). BTL NR NR 4.65 10/10/2017 5,174,956 3,324,909
-----------
4,539,150
-----------
MULTILINE RETAIL -- 1.2%
99 Cents Only Store................................. BTL-B B2 B 4.50 01/11/2019 1,179,771 1,166,007
Neiman Marcus Group, Inc............................ BTL-B B2 B 4.25 10/25/2020 3,351,100 3,274,769
-----------
4,440,776
-----------
OIL, GAS & CONSUMABLE FUELS -- 4.9%
American Energy Marcellus LLC....................... 1st Lien Ba3 B- 5.25 08/04/2020 1,565,000 1,369,375
American Energy Marcellus LLC....................... 2nd Lien Caa1 CCC 8.50 08/04/2021 835,000 705,575
Arch Coal, Inc...................................... BTL B1 B+ 6.25 05/16/2018 2,984,153 2,463,419
Callon Petroleum Co................................. 2nd Lien NR NR 8.50 10/08/2021 1,620,000 1,526,850
Chief Exploration & Development LLC................. 2nd Lien NR NR 7.50 05/12/2021 1,785,000 1,597,575
Philadelphia Energy Solutions LLC................... BTL-B B1 BB- 6.25 04/04/2018 938,288 878,863
Power Buyer LLC..................................... BTL B2 B+ 4.25 05/06/2020 998,133 969,437
Power Buyer LLC..................................... Delayed Draw B2 B+ 4.25 05/06/2020 53,296 51,831
Power Buyer LLC..................................... 2nd Lien Caa2 CCC+ 8.25 11/06/2020 1,670,000 1,611,550
Samson Investment Co................................ 2nd Lien B2 B- 5.00 09/25/2018 1,500,000 1,176,251
Sandy Creek Energy Associates....................... BTL-B Ba3 BB- 5.00 11/08/2020 2,358,316 2,306,728
Templar Energy LLC.................................. 2nd Lien B3 B- 8.50 11/25/2020 1,825,000 1,304,875
Western Refining LP................................. BTL-B B1 BB- 4.25 11/12/2020 2,153,225 2,085,937
-----------
18,048,266
-----------
PAPER & FOREST PRODUCTS -- 0.4%
Exopack LLC......................................... BTL B1 B 5.25 05/08/2019 1,390,950 1,382,837
-----------
PHARMACEUTICALS -- 2.2%
Alkermes, Inc....................................... BTL-B Ba3 BB+ 3.50 09/18/2019 995,751 985,793
Catalent Pharma Solutions, Inc...................... BTL-B2 B1 BB 4.25 05/20/2021 2,459,800 2,441,351
PRA Holdings, Inc................................... 1st Lien B1 B 4.50 09/23/2020 1,994,511 1,962,100
Salix Pharmaceuticals, Ltd.......................... BTL Ba1 BB- 4.25 01/02/2020 2,655,250 2,618,740
-----------
8,007,984
-----------
POOLED VEHICLE -- 0.5%
Bombardier Recreational Products, Inc............... 1st Lien B1 BB- 4.00 01/30/2019 1,961,143 1,918,857
-----------
15
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
-----------------------------------------------------------------------------------------------------------------------
PROFESSIONAL SERVICES -- 0.6%
Nexeo Solutions LLC............................ BTL-B1 B2 B 5.00% 09/08/2017 $1,479,741 $ 1,426,100
Nexeo Solutions LLC............................ BTL-B2 B2 B 5.00 09/08/2017 650,038 626,474
------------
2,052,574
------------
REAL ESTATE INVESTMENT TRUSTS -- 0.5%
Capital Automotive LP.......................... 2nd Lien B1 B- 6.00 04/30/2020 1,405,000 1,397,975
ESH Hospitality, Inc........................... BTL NR B+ 5.00 06/24/2019 390,000 389,025
------------
1,787,000
------------
REAL ESTATE MANAGEMENT & DEVELOPMENT -- 1.1%
DTZ US Borrower LLC............................ 1st Lien B1 B+ 5.50 11/04/2021 854,744 851,539
DTZ US Borrower LLC............................ 2nd Lien B3 B- 9.25 11/05/2022 1,085,000 1,074,150
DTZ US Borrower LLC............................ Delayed Draw B1 B+ 5.50 11/04/2021 509,209 507,299
Realogy Corp................................... CLTL Ba3 BB 0.27 10/10/2016 86,527 85,662
Realogy Corp................................... BTL Ba3 BB 3.75 03/05/2020 1,568,773 1,538,704
------------
4,057,354
------------
ROAD & RAIL -- 0.9%
Neff Rental LLC................................ 2nd Lien Caa1 B- 7.25 06/09/2021 1,657,757 1,624,601
Swift Transportation Co., Inc.................. BTL-B Ba2 BB- 3.75 06/09/2021 1,617,775 1,594,722
------------
3,219,323
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 1.7%
Avago Technologies, Ltd........................ BTL-B Ba1 BBB- 3.75 05/06/2021 2,446,453 2,433,201
Entegris, Inc.................................. BTL-B Ba3 BB+ 3.50 04/30/2021 986,573 963,142
Freescale Semiconductor, Inc................... BTL-B4 B1 B 4.25 03/01/2020 3,002,341 2,921,278
------------
6,317,621
------------
SOFTWARE -- 4.2%
Eagle Parent, Inc. (Epicor).................... BTL-B2 Ba3 B+ 4.00 05/16/2018 2,407,804 2,370,483
Hyland Software, Inc........................... BTL B2 B 4.75 02/19/2021 1,554,875 1,539,326
Kronos, Inc. (Seahawk)......................... BTL-C B1 B- 4.50 10/30/2019 3,597,862 3,567,881
Kronos, Inc. (Seahawk)......................... 2nd Lien Caa2 CCC 9.75 04/30/2020 2,678,362 2,718,538
Lawson Software, Inc........................... BTL-B5 Ba3 B+ 3.75 06/03/2020 955,446 924,394
Magic Newco LLC (Misys)........................ BTL B1 B+ 5.00 12/12/2018 2,093,412 2,077,712
Micro Focus International PLC.................. BTL B1 BB- 5.25 10/07/2021 1,000,000 959,167
RP Crown Parent LLC............................ BTL B2 B 6.00 12/21/2018 746,757 689,817
Verint Systems, Inc............................ Tranche B Ba2 BBB- 3.50 09/06/2019 435,762 430,968
------------
15,278,286
------------
SPECIALTY RETAIL -- 1.9%
Hillman Group, Inc............................. BTL-B B1 B 4.50 06/30/2021 1,263,650 1,244,695
J Crew Operating Corp.......................... BTL-B1 B2 B- 4.00 03/05/2021 1,012,654 949,363
Michaels Stores, Inc........................... BTL-B2 Ba3 B+ 3.75 01/28/2020 1,001,183 979,908
Michaels Stores, Inc........................... Delayed Draw Ba3 B+ 4.00 01/28/2020 997,500 981,041
Party City Holdings, Inc....................... BTL B2 B 4.00 07/27/2019 1,995,349 1,945,465
Serta Simmons Holdings LLC..................... BTL-B B1 B+ 4.25 10/01/2019 994,545 979,472
------------
7,079,944
------------
TECH HARDWARE, STORAGE & PERIPHERAL -- 0.2%
CDW Corp....................................... BTL Ba3 BB+ 3.25 04/29/2020 878,093 851,092
------------
WIRELESS TELECOMMUNICATION SERVICES -- 1.4%
Intelsat Jackson Holdings, Ltd................. BTL-B2 Ba3 BB 3.75 06/30/2019 1,915,416 1,885,886
LTS Buyer LLC.................................. 1st Lien B1 B 4.00 04/11/2020 783,075 765,456
LTS Buyer LLC.................................. 2nd Lien Caa1 CCC+ 8.00 04/12/2021 271,975 266,082
Syniverse Technologies, Inc.................... BTL-B B1 BB- 4.00 04/23/2019 2,203,761 2,130,303
------------
5,047,727
------------
TOTAL LOANS (cost $345,470,526)................ 333,059,891
------------
16
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------------------------------------------
U.S. CORPORATE BONDS & NOTES -- 4.7%
COMMUNICATIONS EQUIPMENT -- 0.3%
Alcatel-Lucent USA, Inc.*................... Company Guar. Notes B3 B 6.75% 11/15/2020 $ 890,000 $ 939,395
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.5%
Level 3 Financing, Inc.*.................... Company Guar. Notes B3 B 5.38 08/15/2022 2,000,000 2,010,000
-----------
HEALTH CARE PROVIDERS & SERVICES -- 0.6%
CHS/Community Health Systems, Inc........... Company Guar. Notes B3 B- 6.88 02/01/2022 620,000 656,813
MPH Acquisition Holdings LLC*............... Company Guar. Notes Caa1 CCC+ 6.63 04/01/2022 285,000 291,413
Tenet Healthcare Corp....................... Senior Notes B3 CCC+ 8.13 04/01/2022 1,235,000 1,380,113
-----------
2,328,339
-----------
INDUSTRIAL POWER PRODUCERS & ENERGY TRADERS -- 0.3%
Dynegy Finance, Inc.*....................... Senior Sec. Notes B3 B+ 6.75 11/01/2019 1,020,000 1,037,850
-----------
IT SERVICES -- 0.3%
First Data Corp.*........................... Senior Sec. Notes B1 BB- 7.38 06/15/2019 1,135,000 1,194,588
-----------
MEDIA -- 0.5%
Cequel Communications Holdings I LLC*....... Senior Notes B3 B- 5.13 12/15/2021 975,000 945,750
LIN Television Corp.*....................... Senior Notes B3 B+ 5.88 11/15/2022 1,000,000 990,000
-----------
1,935,750
-----------
METALS & MINING -- 0.2%
Steel Dynamics, Inc.*....................... Senior Notes Ba2 BB+ 5.13 10/01/2021 580,000 590,875
-----------
OIL, GAS & CONSUMABLE FUELS -- 0.5%
EP Energy LLC............................... Company Guar. Notes B2 B 9.38 05/01/2020 758,000 765,580
Rosetta Resources, Inc...................... Company Guar. Notes B1 BB- 5.88 06/01/2022 975,000 877,500
WPX Energy, Inc............................. Senior Notes Ba1 BB+ 5.25 09/15/2024 315,000 292,950
-----------
1,936,030
-----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.2%
Freescale Semiconductor, Inc.*.............. Senior Sec. Notes B1 B 6.00 01/15/2022 815,000 851,675
-----------
SOFTWARE -- 0.2%
Infor Software Parent LLC*.................. Company Guar. Notes Caa1 CCC+ 7.13 05/01/2021 895,000 877,100
-----------
SPECIALTY RETAIL -- 0.2%
Party City Holdings, Inc.................... Company Guar. Notes Caa1 CCC+ 8.88 08/01/2020 540,000 576,450
-----------
TECH HARDWARE, STORAGE & PERIPHERAL -- 0.6%
CDW LLC/CDW Finance Corp.................... Company Guar. Notes B3 B+ 6.00 08/15/2022 2,000,000 2,065,000
-----------
WIRELESS TELECOMMUNICATION SERVICES -- 0.3%
Sprint Corp................................. Company Guar. Notes B2 BB- 7.25 09/15/2021 1,000,000 991,250
-----------
TOTAL U.S. CORPORATE BONDS & NOTES (cost
$17,003,941).............................. 17,334,302
-----------
FOREIGN CORPORATE BONDS & NOTES -- 2.6%
BANKS- 0.1%
Banco Bilbao Vizcaya Argentaria SA VRS(13).. Jr. Sub. Notes NR NR 9.00 05/09/2018 400,000 428,000
Societe Generale SA VRS(13)................. Jr. Sub. Notes Ba2 BB+ 8.25 11/29/2018 400,000 410,900
-----------
838,900
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.5%
Altice Financing SA*........................ Senior Sec. Notes B1 BB- 6.50 01/15/2022 1,710,000 1,671,525
-----------
ENERGY EQUIPMENT & SERVICES -- 0.2%
Shelf Drilling Holdings, Ltd.*.............. Senior Sec. Notes Ba3 B+ 8.63 11/01/2018 695,000 569,900
-----------
METALS & MINING -- 0.8%
Constellium NV*............................. Senior Notes B1 NR 8.00 01/15/2023 2,045,000 2,034,775
Essar Steel Algoma, Inc.*................... Senior Sec. Notes Ba3 B+ 9.50 11/15/2019 970,000 977,275
-----------
3,012,050
-----------
OIL, GAS & CONSUMABLE FUELS -- 0.3%
Tullow Oil PLC*............................. Company Guar. Notes B2 B+ 6.00 11/01/2020 1,300,000 1,079,000
-----------
17
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
-----------
SHARES/
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
---------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS -- 0.4%
Tembec Industries, Inc.*.................... Senior Sec. Notes B3 B- 9.00% 12/15/2019 $1,495,000 $ 1,470,706
------------
WIRELESS TELECOMMUNICATION SERVICES -- 0.3%
Intelsat Luxembourg SA...................... Company Guar. Notes Caa2 B- 7.75 06/01/2021 1,000,000 1,002,500
------------
TOTAL FOREIGN CORPORATE BONDS & NOTES (cost
$10,074,693).............................. 9,644,581
------------
COMMON STOCKS -- 0.0%
MEDIA -- 0.0%
Berry Co. LLC+(5)(6)(14) (cost $668,529).... 1,136 31,024
------------
PREFERRED SECURITIES -- 0.0%
COMMERCIAL SERVICES & SUPPLIES -- 0.0%
Ancora Holdings LLC 6.00%(5)(6)(14) (cost
$0)....................................... 56 0
------------
MEMBERSHIP INTEREST -- 0.0%
MEDIA -- 0.0%
NextMedia Operating, Inc.+(5)(6)(14)........ 7,916 8,074
VSS-AHC Holdings LLC+(5)(6)(14)............. 12,608 13,112
------------
TOTAL MEMBERSHIP INTEREST (cost $290,226)... 21,186
------------
WARRANTS -- 0.0%
COMMERCIAL SERVICES & SUPPLIES -- 0.0%
Ancora Holdings LLC Expires
08/12/2020 (Strike Price
$1.90)+(5)(6)(14) (cost $0)............... 3 0
------------
TOTAL LONG-TERM INVESTMENT SECURITIES (cost
$373,507,915)............................. 360,090,984
------------
SHORT-TERM INVESTMENT SECURITIES -- 0.0%
REGISTERED INVESTMENT COMPANIES -- 0.0%
SSgA Money Market Fund (cost $1,000)........ 1,000 1,000
------------
TOTAL INVESTMENTS
(cost $373,508,915)(15)..................... 97.8% 360,091,984
OTHER ASSETS LESS LIABILITIES................ 2.2 8,047,930
---------- ------------
NET ASSETS................................... 100.0% $368,139,914
========== ============
--------
BTL--Bank Term Loan
CLTL--Credit Linked Term Loan
DIP--Debtor in Possession
NR --Security is not rated.
VRS--Variable Rate Security
The rates shown on VRS are the current interest rates as of December 31, 2014
and unless noted otherwise, the dates shown are the original maturity dates.
+ Non-income producing security
* Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. The Fund has no
rights to demand registration of these securities. At December 31, 2014,
the aggregate value of these securities was $17,531,827, representing 4.8%
of net assets. Unless otherwise indicated, these securities are not
considered to be illiquid.
(1) Bank loans rated below Baa by Moody's Investor Service, Inc. or BBB by
Standard & Poor's Group are considered below investment grade. Ratings
provided are as of December 31, 2014.
(2) Based on the stated maturity, the weighted average maturity of the loans
held in the portfolio is approximately 68 months. Loans in the Fund's
portfolio are generally subject to mandatory and/or optional prepayment.
Because of these mandatory prepayment conditions and because there may be
significant economic incentives for a Borrower to prepay, prepayments may
occur. As a result, the actual remaining maturity may be substantially
less than the stated maturities shown.
(3) The Fund invests in senior loans which generally pay interest at rates
which are periodically re-determined by reference to a base lending rate
plus a premium. These base lending rates are generally either the lending
rate offered by one or more major European banks, such as the London
Inter-Bank Offer Rate ("LIBOR") or the prime rate offered by one or more
major United States banks, or the certificate of deposit rate. Senior
loans are generally considered to be restrictive in that the Fund is
ordinarily contractually obligated to receive approval from the Agent Bank
and/or borrower prior to the disposition of a senior loan.
(4) All loans in the portfolio were purchased through assignment agreements
unless otherwise indicated.
(5) Illiquid security. At December 31, 2014, the aggregate value of these
securities was $52,210, representing 0.0% of net assets.
18
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
(6) Fair valued security. Securities are classified as Level 3 based on the
securities valuation inputs; see Note 2.
(7) Company has filed for Chapter 11 bankruptcy protection.
(8) Company has filed for Chapter 7 bankruptcy.
(9) Loan is in default of interest and did not pay principal at maturity.
(10) Loan is in default of interest.
(11) PIK ("Payment-In-Kind") security. Income may be paid in additional loans
or cash at the discretion of the issuer.
(12) Security currently paying interest in the form of additional loans.
(13) Perpetual maturity -- maturity date reflects the next call date.
(14) Denotes a restricted security that: (a) cannot be offered for public sale
without first being registered, or being able to take advantage of an
exemption from registration, under the Securities Act of 1933, as amended
(the "1933 Act"); (b) is subject to a contractual restriction on public
sales; or (c) is otherwise subject to a restriction on sales by operation
of applicable law. Restricted securities are valued pursuant to Note 1.
Certain restricted securities held by the Fund may not be sold except in
exempt transactions or in a public offering registered under the 1933 Act.
The Fund has no right to demand registration of these securities. The risk
of investing in certain restricted securities is greater than the risk of
investing in the securities of widely held, publicly traded companies. To
the extent applicable, lack of a secondary market and resale restrictions
may result in the inability of a Fund to sell a security at a fair price
and may substantially delay the sale of the security. In addition, certain
restricted securities may exhibit greater price volatility than securities
for which secondary markets exist. As of December 31, 2014, the SunAmerica
Senior Floating Rate Fund held the following restricted securities:
ACQUISITION ACQUISITION VALUE PER % OF NET
DESCRIPTION DATE SHARES COST VALUE SHARE ASSETS
----------- ----------- ------ ----------- ------- --------- --------
COMMON STOCKS
Berry Co. LLC.............. 04/24/2008 1,136 $668,529 $31,024 $27.31 0.00%
PREFERRED SECURITIES
Ancora Holdings LLC........ 08/12/2013 56 0 0 0.00 0.00
MEMBERSHIP INTEREST
NextMedia Operating, Inc... 06/16/2010 7,916 270,682 8,074 1.02 0.00
VSS-AHC Holdings LLC...... 06/01/2007 12,608 19,544 13,112 1.04 0.00
WARRANTS
Ancora Holdings LLC........ 08/12/2013 3 0 0 0.00 0.00
------- ----
$52,210 0.00%
======= ====
(15) See Note 6 for cost of investments on a tax basis.
(16) Subsequent to December 31, 2014, the company has filed for Chapter 11
bankruptcy protection.
The following is a summary of the inputs used to value the Fund's net assets as
of December 31, 2014 (see Note 2):
LEVEL 1--UNADJUSTED LEVEL 2--OTHER LEVEL 3--SIGNIFCANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
------------------- ----------------- ------------------- ------------
ASSETS:
Investments at Value:*
----------------------
Loans:
Commercial Services & Supplies. $ -- $ 22,719,031 $ 0 $ 22,719,031
Media.......................... -- 33,280,608 165,288 33,445,896
Other Industries............... -- 276,894,964 -- 276,894,964
U.S. Corporate Bonds & Notes..... -- 17,334,302 -- 17,334,302
Foreign Corporate Bonds & Notes.. -- 9,644,581 -- 9,644,581
Common Stocks.................... -- -- 31,024 31,024
Preferred Securities............. -- -- 0 0
Membership Interest.............. -- -- 21,186 21,186
Warrants......................... -- -- 0 0
Short-Term Investment Securities. 1,000 -- -- 1,000
------ ------------ -------- ------------
TOTAL INVESTMENTS AT VALUE....... $1,000 $359,873,486 $217,498 $360,091,984
====== ============ ======== ============
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
At the beginning and end of the reporting period, Level 3 investments in
securities were not considered a material portion of the Fund.
See Notes to Financial Statements
19
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2014
Note 1. Organization of the Fund
SunAmerica Senior Floating Rate Fund, Inc. (the "Fund") is an open-end,
diversified management investment company. The Fund was organized as a
Maryland corporation in 1998 and is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"). The Fund is managed by SunAmerica
Asset Management, LLC. (the "Adviser" or "SunAmerica"), an indirect
wholly-owned subsidiary of American International Group, Inc. ("AIG"). The
Fund's investment goal and principal investment techniques are to provide as
high a level of current income as is consistent with the preservation of
capital by investing, under normal market conditions, at least 80% of its
net assets, plus any borrowings for investment purposes, in senior secured
floating rate loans and other institutionally traded secured floating rate
debt obligations ("Loans"). The Fund may also purchase both investment grade
and high yield fixed income securities and money market instruments,
although the Fund may not invest more than 10% of its total assets in high
yield fixed income securities. The Fund may invest in foreign securities,
including up to 10% of its total assets in non-U.S. dollar denominated Loans
and high yield fixed income securities and up to 25% of its total assets in
U.S. dollar denominated Loans issued by non-U.S. companies.
The Fund offers two classes of shares. Class A shares are offered at net
asset value per share plus an initial sales charge. Additionally, purchases
of Class A shares in excess of $1,000,000 will be purchased at net asset
value but will be subject to a contingent deferred sales charge ("CDSC") on
redemptions made within two years of purchase. Class C shares are offered
for sale at net asset value without a front-end sales charge, although a
CDSC may be imposed on redemptions made within 12 months of purchase. The
share classes differ in their respective distribution and service
maintenance fees. All classes have equal rights to assets and voting
privileges except as may otherwise be provided in the Fund's registration
statement.
INDEMNIFICATIONS: The Fund's organizational documents provide current and
former officers and directors with a limited indemnification against
liabilities arising out of the performance of their duties to the Fund. In
addition, pursuant to Indemnification Agreements between the Fund and each
of the current directors who is not an "interested person," as defined in
Section 2(a)(19) of the 1940 Act, of the Fund (collectively, the
"Disinterested Directors"), the Fund provides the Disinterested Directors
with a limited indemnification against liabilities arising out of the
performance of their duties to the Fund, whether such liabilities are
asserted during or after their service as directors. In addition, in the
normal course of business, the Fund enters into contracts that contain the
obligation to indemnify others. The Fund's maximum exposure under these
arrangements is unknown. Currently, however, the Fund expects the risk of
loss to be remote.
Note 2. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles ("GAAP") requires management to make
estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from these
estimates and those differences could be significant. The following is a
summary of significant accounting policies consistently followed by the Fund
in the preparation of its financial statements:
SECURITY VALUATION: In accordance with the authoritative guidance on fair
value measurements and disclosures under GAAP, the Fund discloses the fair
value of its investments in a hierarchy that prioritizes the inputs to
valuation techniques used to measure the fair value. In accordance with
GAAP, fair value is defined as the price that the Fund would receive upon
selling an asset or transferring a liability in a timely transaction to an
independent third party in the principal or most advantageous market. GAAP
establishes a three-tier hierarchy to provide more transparency around the
inputs used to measure fair value and to establish classification of fair
value measurements for disclosure purposes. Inputs refer broadly to the
assumptions that market participants would use in pricing the asset or
liability, including assumptions about risk. Inputs may be observable or
unobservable. Observable inputs are inputs that reflect the assumptions
market participants would use in pricing the asset or liability developed
based on market data obtained from sources independent of the reporting
entity. Unobservable inputs are inputs that reflect the reporting
20
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
entity's own assumptions about the assumptions market participants would use
in pricing the asset or liability developed based on the best information
available in the circumstances. The three-tiers are as follows:
Level 1 -- Unadjusted quoted prices in active markets for identical
securities
Level 2 -- Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
referenced indices, quoted prices in inactive markets, adjusted quoted
prices in active markets, adjusted quoted prices on foreign equity
securities that were adjusted in accordance with pricing procedures approved
by the Board of Directors ("the Board"), etc.)
Level 3 -- Significant unobservable inputs (includes inputs that reflect the
Fund's own assumptions about the assumptions market participants would use
in pricing the security, developed based on the best information available
under the circumstances.)
Changes in valuation techniques may result in transfers in or out of an
investment's assigned Level within the hierarchy. The methodology used for
valuing investments is not necessarily an indication of the risk associated
with investing in those investments and the determination of the
significance of a particular input to the fair value measurement in its
entirety requires judgment and consideration of factors specific to each
security.
The availability of observable inputs can vary from security to security and
is affected by a wide variety of factors, including, for example, the type
of security, whether the security is recently issued and not yet established
in the marketplace, the liquidity of markets, and other characteristics
particular to the security. To the extent that valuation is based on models
or inputs that are less observable or unobservable in the market, the
determination of fair value requires more judgment. Accordingly, the degree
of judgment exercised in determining fair value is greatest for instruments
categorized in Level 3.
The summary of inputs used to value the Fund's net assets as of December 31,
2014 is reported on a schedule following the Portfolio of Investments.
Loans are valued at the average of available bids in the market for such
Loans, as provided by a Board-approved loan pricing service, and are
generally categorized as Level 2.
Stocks are generally valued based upon closing sales prices reported on
recognized securities exchanges on which the securities are principally
traded and are generally categorized as Level 1. Stocks listed on the NASDAQ
are valued using the NASDAQ Official Closing Price ("NOCP"). Generally, the
NOCP will be the last sale price unless the reported trade for the stock is
outside the range of the bid/ask price. In such cases, the NOCP will be
normalized to the nearer of the bid or ask price. For listed securities
having no sales reported and for unlisted securities, such securities will
be valued based upon the last reported bid price.
Bonds, debentures, other long-term debt securities, and short-term debt
securities with maturities in excess of 60 days, are valued at evaluated bid
prices obtained for the day of valuation from a Board-approved pricing
service, and are generally categorized as Level 2. The pricing service may
use valuation models or matrix pricing which considers information with
respect to comparable bond and note transactions, quotations from bond
dealers, or by reference to other securities that are considered comparable
in such characteristics as rating, interest rate, and maturity date, option
adjusted spread models, prepayments projections, interest rate spreads, and
yield curves to determine current value. If a price is unavailable from a
Board-approved pricing service, the securities may be priced at the mean of
two independent quotes obtained from brokers.
Short-term securities with 60 days or less to maturity are amortized to
maturity based on their cost to a Fund if acquired within 60 days of
maturity or, if already held by the Fund on the 60th day, are amortized to
maturity based on the value determined on the 61st day, and are generally
categorized as Level 2.
21
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
Investments in registered investment companies that do not trade on an
exchange are valued at the end of day net asset value per share. Investments
in registered investment companies that trade on an exchange are valued at
the last sales price or official closing price as of the close of the
customary trading session on the exchange where the security is principally
traded. Registered investment companies are generally categorized as Level 1.
The Board is responsible for the share valuation process and has adopted
policies and procedures (the "PRC Procedures") for valuing the securities
and other assets held by the Fund, including procedures for the fair
valuation of securities and other assets for which market quotations are not
readily available or are unreliable. The PRC Procedures provide for the
establishment of a pricing review committee, which is responsible for, among
other things, making certain determinations in connection with the Fund's
fair valuation procedures. Securities for which market quotations are not
readily available or the values of which may be significantly impacted by
the occurrence of developments or significant events are generally
categorized as Level 3. There is no single standard for making fair value
determinations, which may result in prices that vary from those of other
funds.
MASTER AGREEMENTS: The Fund has entered into Master Repurchase Agreements
("Master Agreements") with certain counterparties that govern repurchase
agreement transactions. The Master Agreements may contain provisions
regarding, among other things, the parties' general obligations,
representations, agreements, collateral requirements and events of default.
Collateral can be in the form of cash or securities as agreed to by the Fund
and applicable counterparty. The Master Agreements typically specify certain
standard termination events, such as failure of a party to pay or deliver,
credit support defaults and other events of default. Upon the occurrence of
an event of default, the other party may elect to terminate early and cause
settlement of all repurchase agreement transactions outstanding pursuant to
a particular Master Agreement, including the payment of any losses and costs
resulting from such early termination, as reasonably determined by the
terminating party. Any decision by one or more of the Fund's counterparties
to elect early termination could cause the Fund to accelerate the payment of
liabilities. Typically, the Master Agreement will permit a single net
payment in the event of default. Note, however, that bankruptcy or
insolvency laws of a particular jurisdiction may impose restrictions on or
prohibitions against the right of offset in bankruptcy, insolvency or other
events. At December 31, 2014, the Fund did not enter into any repurchase
agreements.
REPURCHASE AGREEMENTS: The Fund, along with other affiliated registered
investment companies, pursuant to procedures adopted by the Board and
applicable guidance from the Securities and Exchange Commission ("SEC"), may
transfer uninvested cash balances into a single joint account, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by U.S. Treasury or federal agency obligations. In a
repurchase agreement, the seller of a security agrees to repurchase the
security at a mutually agreed-upon time and price, which reflects the
effective rate of return for the term of the agreement. For repurchase
agreements and joint repurchase agreements, the Fund's custodian takes
possession of the collateral pledged for investments in such repurchase
agreements ("repo" or collectively "repos"). The underlying collateral is
valued daily on a mark to market basis, plus accrued interest, to ensure
that the value, at the time the agreement is entered into, is equal to at
least 102% of the repurchase price, including accrued interest. In the event
of default of the obligation to repurchase, the Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. If the seller defaults and the value of the collateral declines
or if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Fund may be delayed or
limited. At December 31, 2014, the Fund did not enter into any repurchase
agreements.
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS: Security transactions are recorded on a trade
date basis. Realized gains and losses on sales of investments are calculated
on the identified cost basis. Interest income is accrued daily from
settlement date except when collection is not expected. Dividend income is
recorded on the ex-dividend date. For financial statement purposes, the Fund
amortizes all premiums and accretes all discounts. Facility fees received,
which were $848,680 for the year ended December 31, 2014, are accreted to
income over the life of the Loans. Other income, including amendment fees,
commitment fees, letter of credit fees, etc., which were $357,556 for the
year ended December 31, 2014, are recorded as income when received or
contractually due to the Fund.
22
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
Net investment income, other than class specific expenses, and realized and
unrealized gains and losses, are allocated daily to each class of shares
based upon the relative net asset value of outstanding shares (or the value
of dividend-eligible shares, as appropriate) of each class of shares at the
beginning of the day (after adjusting for the current capital share activity
of the respective class).
Dividends from net investment income are normally declared daily and paid
monthly. Capital gain distributions, if any, are paid annually. The Fund
records dividends and distributions to the shareholders on the ex-dividend
date. The amount of dividends and distributions from net investment income
and net realized capital gains are determined in accordance with federal
income tax regulations, which may differ from GAAP. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are
reclassified within the capital accounts at fiscal year end based on their
federal tax-basis treatment; temporary differences do not require
reclassification. Net assets are not affected by the reclassifications.
The Fund is considered a separate entity for tax purposes and intends to
comply with the requirements of the Internal Revenue Code, as amended,
applicable to regulated investment companies and distribute all of its
taxable income, including any net capital gains on investments, to its
shareholders. The Fund also intends to distribute sufficient net investment
income and net capital gains, if any, so that the Fund will not be subject
to excise tax on undistributed income and gains. Therefore, no federal
income tax or excise tax provision is required.
The Fund recognizes the tax benefits of uncertain tax positions only when
the position is more likely than not to be sustained, assuming examination
by tax authorities. Management has analyzed the Fund's tax positions and
concluded that no liability for unrecognized tax benefits should be recorded
related to uncertain tax positions taken on returns filed for open tax years
2011-2013 or expected to be taken in the Fund's 2014 tax return. The Fund is
not aware of any tax provisions for which it is reasonably possible that the
total amounts of unrecognized tax benefits will change materially in the
next twelve months. The Fund files U.S. federal and certain state income tax
returns. With few exceptions, the Fund is no longer subject to U.S. federal
and state tax examinations by tax authorities for tax returns ending before
2011.
Note 3. Capital Share Transactions
The Fund has 1,000,000,000 of $.01 par value shares authorized that may be
issued in two different classes. Transactions in shares of each class were
as follows:
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, 2014 DECEMBER 31, 2013
-------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
CLASS A ----------- ------------- ---------- ------------
Shares sold................. 7,402,040 $ 61,531,989 14,522,838 $120,864,898
Reinvested distributions.... 609,379 5,045,586 607,488 5,054,754
Shares redeemed............. (12,678,846) (104,799,731) (9,407,392) (78,252,775)
----------- ------------- ---------- ------------
Net increase (decrease).. (4,667,427) $ (38,222,156) 5,722,934 $ 47,666,877
=========== ============= ========== ============
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, 2014 DECEMBER 31, 2013
-------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
CLASS C ----------- ------------- ---------- ------------
Shares sold................. 5,241,629 $ 43,534,663 9,683,350 $80,521,886
Reinvested distributions.... 696,794 5,762,846 633,446 5,267,346
Shares redeemed............. (7,980,892) (65,946,838) (5,217,008) (43,370,910)
----------- ------------- ---------- ------------
Net increase (decrease).. (2,042,469) $ (16,649,329) 5,099,788 $ 42,418,322
=========== ============= ========== ============
23
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
Note 4. Purchases and Sales of Securities
During the year ended December 31, 2014, the Fund's cost of purchases and
proceeds from sale of long-term investments, including loan principal
paydowns were $272,456,890 and $335,205,759, respectively.
Note 5. Investment Advisory Agreement and Other Transactions with Affiliates
The Fund has entered into an Investment Advisory and Management Agreement
(the "Advisory Agreement") with SunAmerica. Pursuant to the Advisory
Agreement, SunAmerica provides continuous supervision of the Fund and
administers its corporate affairs, subject to the general review and
oversight of the Board. In connection therewith, SunAmerica furnishes the
Fund with office facilities, maintains certain of the Fund's books and
records and pays the salaries and expenses of all personnel, including
officers of the Fund who are employees of SunAmerica and its affiliates.
SunAmerica also selects, contracts with and compensates the subadviser to
manage the Fund's assets. The Fund will pay SunAmerica a monthly management
fee at the following annual rates, based on the average daily net assets of
the Fund: 0.85% on the first $1 billion; 0.80% on the next $1 billion; and
0.75% in excess of $2 billion.
Wellington Management Company LLP ("Wellington") acts as subadviser to the
Fund pursuant to a Subadvisory Agreement with SunAmerica. Under the
Subadvisory Agreement, Wellington manages the investment and reinvestment of
the Fund's assets. For compensation for its services as subadviser,
Wellington is entitled to receive from SunAmerica a monthly fee payable at
the following annual rates: 0.30% of average daily net assets on the first
$500 million and 0.25% thereafter. The fee paid to the subadviser is paid by
SunAmerica and not the Fund.
Pursuant to the Administrative Services Agreement (the "Administrative
Agreement"), SunAmerica acts as the Fund's administrator and is responsible
for providing and supervising the performance by others, of administrative
services in connection with the operations of the Fund, subject to
supervision by the Fund's Board. For its services, SunAmerica receives an
annual fee equal to 0.20% of average daily net assets of the Fund. For the
year ended December 31, 2014, the Fund incurred administration fees in the
amount of $844,508.
The Fund has entered into a Distribution Agreement with AIG Capital
Services, Inc.* ("ACS" or the "Distributor"), an affiliate of the Adviser.
The Fund has adopted a Distribution Plan on behalf of each class of shares
(each a "Plan" and collectively, the "Plans") in accordance with the
provisions of Rule 12b-1 under the 1940 Act, hereinafter referred to as the
"Class A Plan" and "Class C Plan". In adopting the Plans, the Board
determined that there was a reasonable likelihood that each such Plan would
benefit the Fund and the shareholders of the respective class. The sales
charge and distribution fees of a particular class will not be used to
subsidize the sale of shares of any other class.
Under the Class A Plan and Class C Plan, the Distributor receives payments
from the Fund at an annual rate of 0.10% and 0.50%, respectively, of the
average daily net assets of the Fund's Class A and Class C shares to
compensate the Distributor and certain securities firms for providing sales
and promotional activities for distributing that class of shares. The
distribution costs for which the Distributor may be compensated include fees
paid to broker-dealers that have sold Fund shares, commissions and other
expenses such as those incurred for sales literature, prospectus printing
and distribution and compensation to wholesalers. It is possible that in any
given year, the amount paid to the Distributor under each Class' Plan may
exceed the Distributor's distribution costs as described above. The Plans
provide that the Class A and Class C shares of the Fund will pay the
Distributor an account maintenance fee up to an annual rate of 0.25% of the
aggregate average daily net assets of such class of shares for payments to
compensate the Distributor and certain securities firms for account
maintenance activities. For the year ended December 31, 2014, ACS received
fees (see Statement of Operations) based upon the aforementioned rates. For
the year ended December 31, 2014, ACS received sales charges on Class A
shares of $381,911, of which $245,232 was reallowed to affiliated
broker-dealers and $69,572 to non-affiliated broker-dealers. In addition,
ACS receives the proceeds of contingent deferred sales charges paid by
investors in connection with certain redemptions of Class A and Class C
shares. For the year ended December 31, 2014, ACS received contingent
deferred sales charges of $85,526.
--------
* Effective February 28, 2014, SunAmerica Capital Services, Inc. ("SACS")
changed its name to AIG Capital Securities, Inc. ("ACS").
24
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
The Fund has entered into a Service Agreement with SunAmerica Fund Services,
Inc. ("SAFS") an affiliate of the Adviser. Under the Service Agreement, SAFS
performs certain shareholder account functions by assisting the Fund's
transfer agent in connection with the services that it offers to the
shareholders of the Fund. The Service Agreement, which permits the Fund to
compensate SAFS for services rendered based upon an annual rate of 0.22% of
average daily net assets, is approved annually by the Board of Directors.
For the year ended December 31, 2014, the Fund incurred the following
expenses, which are included in the transfer agent fees and expenses payable
on the Statement of Assets and Liabilities and in transfer agent fees and
expenses in the Statement of Operations to compensate SAFS pursuant to the
terms of the Service Agreement.
PAYABLE AT
EXPENSE DECEMBER 31, 2014
-------- -----------------
Class A....................... $404,450 $29,677
Class C....................... 523,998 41,337
SunAmerica has contractually agreed to waive fees and/or reimburse expenses
to the extent necessary to cap the Fund's annual operating expenses at 1.45%
for Class A and 1.75% for Class C, of average daily net assets. For purposes
of waived fees and/or reimbursed expense calculations, annual Fund operating
expenses shall not include extraordinary expenses, as determined under GAAP,
such as litigation, or acquired fund fees and expenses, brokerage
commissions and other transactional expenses relating to the purchase and
sale of portfolio securities, interest, taxes and governmental fees and
other expenses not incurred in the ordinary course of the Fund's business.
The expense reimbursements and fee waivers will continue indefinitely,
unless terminated by the Board, including a majority of the Disinterested
Directors. For the year ended December 31, 2014, SunAmerica waived fees
and/or reimbursed expenses as follows: Class A $586,985 and Class C $984,516.
Note 6. Federal Income Taxes
The following details the tax basis distributions as well as the components
of distributable earnings. The tax basis components of distributable
earnings differ from the amounts reflected in the Statement of Assets and
Liabilities by temporary book/tax differences primarily arising from
dividends payable, post October losses, and treatment of defaulted
securities.
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS
----------------------------------------- ---------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 2014 FOR THE YEAR ENDED DECEMBER 31, 2014 FOR THE YEAR ENDED DECEMBER 31, 2013
----------------------------------------- ------------------------------------- -------------------------------------
LONG-TERM GAINS/ UNREALIZED LONG-TERM LONG-TERM
ORDINARY CAPITAL AND OTHER APPRECIATION/ ORDINARY CAPITAL ORDINARY CAPITAL
INCOME LOSSES (DEPRECIATION) INCOME GAINS INCOME GAINS
-------- ----------------- -------------- ------------ --------- ------------ ---------
$44,828 $(55,354,216) $(13,416,931) $15,048,872 $-- $14,790,675 $--
CAPITAL LOSS CARRYFORWARDS. At December 31, 2014, capital loss carryforwards
available to offset future recognized gains were $55,354,216 with
$16,003,027 expiring in 2016, $27,303,177 expiring in 2017 and 12,048,012 of
unlimited long-term losses.+
--------
+ On December 22, 2010, the Regulated Investment Company Modernization Act of
2010 (the "Act") was enacted which changed various technical rules governing
the tax treatment of regulated investment companies. The changes are
generally effective for taxable years beginning after the date of enactment.
Under the Act, the Fund will be permitted to carry forward capital losses
incurred in taxable years beginning after the date of enactment for an
unlimited period. However, any losses incurred during those future taxable
years will be required to be utilized prior to the losses incurred in
pre-enactment taxable years, which carry an expiration date. As a result of
this ordering rule, pre-enactment capital loss carryforwards may be more
likely to expire unused. Additionally, post-enactment capital losses that
are carried forward will retain their character as either short-term or
long-term losses rather than being considered all short-term as under
previous law.
During the year ended December 31, 2014, the Fund utilized $1,362,929 of
capital loss carryforwards to offset current year capital gains.
Under the current law, capital losses realized after October 31 and
specified ordinary losses may be deferred and treated as occurring on the
first day of the following year. For the year ended December 31, 2014, the
Fund elected to defer $356,761 of Post-October short-term capital losses and
$1,180,450 of Post-October long-term capital losses.
25
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2014 -- (CONTINUED)
Unrealized appreciation and depreciation in the value of investments at
December 31, 2014 for federal income tax purposes were as follows:
Cost (tax basis).............. $373,508,915
=============
Gross unrealized appreciation. $ 1,041,424
Gross unrealized depreciation. (14,458,355)
-------------
Net unrealized depreciation... ($ 13,416,931)
=============
Note 7. Line of Credit
The SunAmerica family of mutual funds has established a $75 million
committed and $50 million uncommitted line of credit with State Street
Bank and Trust Company, the Fund's custodian. Interest is currently payable
at the higher of the Federal Funds Rate plus 125 basis points or the
overnight London Interbank Offered Rate plus 125 basis points on the
committed line and State Street Bank and Trust Company's discretionary bid
rate on the uncommitted line of credit. There is also a commitment fee of 15
basis points per annum on the daily unused portion of the committed line of
credit and a one-time closing fee of 5 basis points on the uncommitted line
of credit, both of which are included in other expenses on the Statements of
Operations. Prior to September 12, 2014, the commitment fee was 10 basis
points per annum on the daily unused portion of the committed line of credit
and there was no closing fee on the uncommitted line of credit. Borrowings
under the line of credit will commence when the respective Fund's cash
shortfall exceeds $100,000. For the year ended December 31, 2014, the Fund
had borrowings outstanding for 36 days under the line of credit and incurred
$1,683 in interest charges related to these borrowings. The Fund's average
amount of debt under the line of credit for the days utilized was $1,234,426
at a weighted average interest rate of 1.36%. At December 31, 2014, the line
of credit had a $2,391,479 balance outstanding.
Note 8. Interfund Lending
Pursuant to the exemptive relief granted by the SEC, the Fund is permitted
to participate in an interfund lending program among investment companies
advised by SunAmerica or an affiliate. The interfund lending program allows
the participating funds to borrow money from and lend money to each other
for temporary or emergency purposes. An interfund loan will be made under
this facility only if the participating funds receive a more favorable
interest rate than would otherwise be available from a typical bank for a
comparable transaction. For the year ended December 31, 2014, the Fund did
not participate in this program.
Note 9. Investment Concentration
The Fund invests primarily in participations and assignments, or acts as a
party to the primary lending syndicate of a variable rate senior loan
interest to United States corporations, partnerships, and other entities. If
the lead lender in a typical lending syndicate becomes insolvent, enters
receivership or, if not FDIC insured, enters into bankruptcy, the Fund may
incur certain costs and delays in receiving payment, or may suffer a loss of
principal and/or interest. When the Fund purchases a participation of a
senior loan interest, the Fund typically enters into a contractual agreement
with the lender or other third party selling the participation but not with
the borrower directly. As such, the Fund is subject to the credit risk of
the borrower, selling participant, lender or other persons positioned
between the Fund and the borrower.
Note 10. Unfunded Loan Commitments
At December 31, 2014, the Fund had no unfunded loan commitments.
26
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of SunAmerica Senior Floating Rate
Fund, Inc.:
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of SunAmerica Senior Floating Rate
Fund, Inc. (the "Fund") at December 31, 2014, the results of its operations for
the year then ended, the changes in its net assets for the two years then ended
and the financial highlights for each of the five years then ended, in
conformity with accounting principles generally accepted in the United States
of America. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit of these financial
statements in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audit, which included confirmation of
securities at December 31, 2014 by correspondence with the custodian, brokers
and selling or agent banks, and the application of alternative auditing
procedures where securities purchased had not been received, provide a
reasonable basis for our opinion expressed above.
PricewaterhouseCoopers LLP
Houston, Texas
February 26, 2015
27
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2014 -- (UNAUDITED)
The following table contains basic information regarding the Directors and
Officers who oversee operations of the Fund and other investment companies
within the Fund complex.
NUMBER OF
TERM OF FUNDS IN
NAME, POSITION(S) OFFICE AND FUND COMPLEX OTHER DIRECTORSHIPS
ADDRESS AND HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY HELD BY DIRECTOR
AGE* THE FUND TIME SERVED(4) DURING THE PAST 5 YEARS DIRECTOR(1) DURING THE PAST 5 YEARS(2)
-------------------- ----------- -------------- ----------------------------- ------------ ------------------------------
DISINTERESTED
DIRECTORS
Dr. Judith L. Craven Director 2001- Retired. 77 Director, Sysco Corp. (1996
Age: 68 present to present); Director, Luby's
Inc. (1998 to present).
William F. Devin Director 2001- Retired. 77 None
Age: 75 present
Richard W. Grant Director 2011 to Retired. Prior to that, 28 None
Age: 68 Chairman present attorney and Partner at
of the Morgan Lewis & Brockius
Board LLP (1989 to 2011).
Stephen J. Gutman Director 2001- Senior Vice President and 28 None
Age: 71 present Associate Broker, The
Corcoran Group (real estate)
(2002 to present); Managing
Member, Beau Brummel
Soho, LLC (licensing of
menswear specialty
retailing) (1995 to 2009);
President, SJG Marketing,
Inc. (2009 to present).
William J. Shea Director 2004- Executive Chairman, Caliber 28 Director, Boston Private
Age: 66 present ID, Inc. (medical devices) Financial Holdings (2004 to
(2007 to present); Managing present); Chairman,
Partner, DLB Capital, LLC Demoulas Supermarkets
(private equity) (2006 to (1999 to present).
2007).
INTERESTED DIRECTOR
Peter A. Harbeck(3) Director 2001- President, CEO and 138 None
Age: 60 present Director, SunAmerica (1995
to present); Director, AIG
Capital Services, Inc.
("ACS") (1993 to present).
28
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2014 -- (UNAUDITED)
(CONTINUED)
NUMBER OF
TERM OF FUNDS IN
NAME, POSITION(S) OFFICE AND FUND COMPLEX OTHER DIRECTORSHIPS
ADDRESS AND HELD WITH LENGTH OF PRINCIPAL OCCUPATIONS OVERSEEN BY HELD BY DIRECTOR
AGE* THE FUND TIME SERVED(4) DURING THE PAST 5 YEARS DIRECTOR(1) DURING THE PAST 5 YEARS(2)
------------------- ------------ -------------- ---------------------------- ------------ --------------------------
OFFICERS
John T. Genoy President 2007- Chief Financial Officer, N/A N/A
Age: 46 present SunAmerica (2002 to
present); Senior Vice
President, SunAmerica
(2003 to present); Chief
Operating Officer,
SunAmerica (2006 to
present).
Gregory N. Bressler Secretary 2005- Senior Vice President and N/A N/A
Age: 48 present General Counsel,
SunAmerica (2005 to
present).
James Nichols Vice 2006- Director, President and N/A N/A
Age: 48 President present CEO, ACS (2006 to
present); Senior Vice
President, ACS (2002 to
2006); Senior Vice
President, SunAmerica
(2002 to present)
Katherine Stoner Vice 2011 to Vice President, SunAmerica N/A N/A
Age: 58 President present (2011 to present); Vice
and Chief President, The Variable
Compliance Annuity Life Insurance
Officer Company ("VALIC"),
("CCO") Western National Life
Insurance Company ("WNL")
and American General
Distributors, Inc. (2006 to
present); Deputy General
Counsel and Secretary,
VALIC and WNL (2007 to
May 2011); Vice President,
VALIC Financial Advisors,
Inc. (2010 to 2011) and
VALIC Retirement Services
Company (2010 to present).
Kathleen D. Fuentes Chief Legal 2013- Vice President and Deputy N/A N/A
Age: 45 Officer and present General Counsel (2006 to
Assistant present)
Secretary
Gregory R. Kingston Treasurer 2014- Vice President, SunAmerica N/A N/A
Age: 49 present (2001 to present); Head of
Mutual Fund Administration,
SunAmerica (2014 to
present)
Nori L. Gabert Vice 2002- Vice President and Deputy N/A N/A
Age: 61 President present General Counsel,
and SunAmerica (2005 to
Assistant present).
Secretary
29
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2014 -- (UNAUDITED)
(CONTINUED)
NUMBER OF
TERM OF FUNDS IN
NAME, POSITION(S) OFFICE AND FUND COMPLEX OTHER DIRECTORSHIPS
ADDRESS AND HELD WITH LENGTH OF PRINCIPAL OCCUPATIONS OVERSEEN BY HELD BY DIRECTOR
AGE* THE FUND TIME SERVED(4) DURING THE PAST 5 YEARS DIRECTOR(1) DURING THE PAST 5 YEARS(2)
-------------------- ----------- -------------- ----------------------------- ------------ --------------------------
OFFICERS
Kara Murphy Vice 2014- Chief Investment Officer, N/A N/A
Age: 41 President present SunAmerica (2013 to
present); Director of
Research, SunAmerica
(2007 to 2013)
Donna McManus Vice 2014- Vice President, SunAmerica N/A N/A
Age: 54 President present (2014 to present); Managing
and Director, BNY Mellon (2009
Assistant to 2014)
Treasurer
Shawn Parry Vice 2005- Vice President, SunAmerica N/A N/A
Age: 42 President present (2014 to present); Assistant
and Vice President, SunAmerica
Assistant (2005 to 2014)
Treasurer
Matthew J. Hackethal Anti-Money 2006- Chief Compliance Officer, N/A N/A
Age: 42 Laundering present SunAmerica (2006 to
Compliance present)
Officer
--------
* The business address for each Director and Officer is Harborside Financial
Center, 3200 Plaza 5, Jersey City, NJ 07311-4992.
(1) The "Fund Complex" means two or more registered investment companies that
hold themselves out to investors as related companies for purposes of
investment services or have a common investment adviser or an investment
adviser that is an affiliated person of the Adviser. The "Fund Complex"
includes the SunAmerica Money Market Funds (1 fund), SunAmerica Equity
Funds (2 funds), SunAmerica Income Funds (3 funds), SunAmerica Series,
Inc. (6 portfolios), Anchor Series Trust (8 portfolios), the Fund, (1
fund), SunAmerica Series Trust (40 portfolios), SunAmerica Specialty
Series (7 funds), VALIC Company I (34 funds), VALIC Company II (15 funds)
and Seasons Series Trust (21 portfolios).
(2) Directorships of companies required to report to the SEC under the
Securities Exchange Act of 1934 (i.e. "public companies") or other
investment companies registered under the 1940 Act, other than those
listed under the preceding column.
(3) Interested Director, as defined within the Investment Company Act of 1940,
because he or she is an officer and a director of the Adviser and a
director of the principal underwriter of the Fund.
(4) Directors serve until their successors are duly elected and qualified.
Each officer will hold office for an indefinite term until the date he or
she resigns or retires or until his/her successor is duly elected and
qualifies.
Additional information concerning the Directors is contained in the Statement
of Additional Information and is available without charge by calling (800)
858-8850.
30
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
SHAREHOLDER TAX INFORMATION -- (UNAUDITED)
Certain tax information regarding the Fund is required to be provided to
shareholders based upon the Fund's income and distributions for the taxable
year ended December 31, 2014. The information necessary to complete your income
tax returns is included with your Form 1099-DIV, which will be mailed to
shareholders in early 2015.
During the year ended December 31, 2014, the Fund paid the following dividends
along with the percentage of ordinary income dividends that qualified for the
70% dividends received deductions for corporations:
NET QUALIFYING % FOR
LONG-TERM THE 70% DIVIDENDS
CAPITAL GAINS RECEIVED DEDUCTION
- ------------- ------------------
Class A............................ $ -- 0.16%
Class C............................ -- 0.16
For the year ended December 31, 2014, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax
Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal
year, $18,196 represents the maximum amount that may be considered qualified
dividend income.
31
(THIS PAGE INTENTIONALLY LEFT BLANK)
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
COMPARISON: FUND VS. INDEX -- (UNAUDITED)
As required by the Securities and Exchange Commission, the graph on the
following pages compares the performance of a $10,000 investment in the Fund to
a similar investment in the index. Please note that the term "inception," as
used herein, reflects the date on which a specific class of shares commenced
operations. It is important to note that the Fund is a professionally managed
mutual fund while the index is not available for investment and is unmanaged.
The comparison is shown for illustrative purposes only. The graph presents the
performance of Class C shares of the Fund. The performance of the other class
will vary based upon the difference in sales charges and fees assessed to
shareholders of that class. Past performance does not predict future results.
33
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
COMPARISON: FUND VS. INDEX -- (UNAUDITED) (CONTINUED)
The Senior Floating Rate Fund (Class C) returned -0.10%, underperforming its
benchmark, the S&P/LSTA Leveraged Loan Index ("LLI")*, which returned 1.60% for
the annual period ended December 31, 2014.
In aggregate, quality allocation detracted from relative performance. An
overweight position in single-B rated loans compared to the LLI detracted from
relative performance. Also, industry allocation overall hurt the Fund's
relative results, driven primarily by an overweight position in the energy &
related industry, which was the weakest performer in the LLI during the annual
period. Positioning in the media-non-cable, entertainment and metal industries
detracted as well. Among individual loans, significant detractors from the
Fund's absolute returns included those of offshore drilling rig operator
Seadrill Partners, fitness club owner and operator Town Sports International
Holdings, oil and gas exploration and production company Templar Energy, coal
miner, processor and marketer Arch Coal and Dubai-based shallow water jack-up
drilling services provider Shelf Drilling International.
On the other side, contributing positively to the Fund's relative
performance, albeit modestly, was its overweight position in CCC-rated loans,
as prices for lower-rated, riskier assets rose more than prices for
higher-rated loans during the annual period overall. Overweighted allocations
to the consumer cyclical services, technology & related, and wireless
industries boosted the Fund's relative results. Individual security selection
overall contributed positively, especially in the technology & related and
health care industries. Among the individual loans that contributed most
positively to the Fund's absolute returns were those of wireless handset
insurance products and services provider Asurion, investment management firm
Nuveen Investments, workforce management solutions provider Kronos,
communications equipment manufacturer and services provider Alcatel-Lucent and
global payment technology solutions company First Data.
--------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
*The S&P/LSTA Leveraged Loan Index (LLI) reflects the market-weighted
performance of U.S. dollar-denominated institutional leveraged loan portfolios.
The LLI is the only domestic leveraged loan index that utilized real-time
market weightings, spreads and interest payments. Indices are not managed and
an investor cannot invest directly in an index.
Securities listed may or may not be a part of current portfolio construction.
The Fund is not a money market fund and its net asset value may fluctuate.
Investments in loans involve certain risks including nonpayment of principal
and interest; collateral impairment; non-diversification and borrower industry
concentration; and lack of an active trading market, in certain cases, which
may impair the Fund's ability to obtain full value for loans sold. The Fund may
invest all or substantially all of its assets in loans or other securities
(e.g., unsecured loans or high yield securities) that are rated below
investment grade, or in comparable unrated securities. Credit risks include the
possibility of a default on the loan or bankruptcy of the borrower. The value
of these loans is subject to a greater degree of volatility in response to
interest rate fluctuations.
34
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
COMPARISON: FUND VS. INDEX -- (UNAUDITED) (CONTINUED)
Over the past ten years, $10,000 invested in Senior Floating Rate Fund Class C
shares would have increased to $13,735. The same amount invested in securities
mirroring the performance of the S&P/LSTA Leveraged Loan Index++ would be
valued at $16,137, while the Barclays U.S. Aggregate Bond Index** would be
valued at $15,842.
[CHART]
Senior Floating S&P/LSTA Leveraged Barclays US Aggregate
Rate Class C Loan Index++ Bond Index**
--------------- ------------------- ----------------------
12/31/2004 $10,000 $10,000.00 $10,000
1/31/2005 10,041 10,040.00 10,063
2/28/2005 10,091 10,094.00 10,003
3/31/2005 10,125 10,136.00 9,952
4/30/2005 10,105 10,129.00 10,087
5/31/2005 10,096 10,135.00 10,196
6/30/2005 10,154 10,201.00 10,251
7/31/2005 10,223 10,278.00 10,158
8/31/2005 10,284 10,340.00 10,288
9/30/2005 10,312 10,382.00 10,182
10/31/2005 10,334 10,413.00 10,102
11/30/2005 10,377 10,453.00 10,146
12/31/2005 10,424 10,508.00 10,243
1/31/2006 10,495 10,580.00 10,243
2/28/2006 10,563 10,647.00 10,277
3/31/2006 10,638 10,712.00 10,177
4/30/2006 10,692 10,764.00 10,158
5/31/2006 10,703 10,791.00 10,147
6/30/2006 10,736 10,821.00 10,169
7/31/2006 10,785 10,883.00 10,306
8/31/2006 10,858 10,950.00 10,464
9/30/2006 10,915 11,009.00 10,556
10/31/2006 10,998 11,082.00 10,626
11/30/2006 11,034 11,140.00 10,749
12/31/2006 11,106 11,219.00 10,687
1/31/2007 11,199 11,317.00 10,682
2/28/2007 11,276 11,395.00 10,847
3/31/2007 11,310 11,441.00 10,847
4/30/2007 11,379 11,509.00 10,906
5/31/2007 11,436 11,579.00 10,823
6/30/2007 11,456 11,605.00 10,791
7/31/2007 11,088 11,216.00 10,881
8/31/2007 11,101 11,242.00 11,015
9/30/2007 11,271 11,462.00 11,098
10/31/2007 11,343 11,571.00 11,198
11/30/2007 11,154 11,411.00 11,399
12/31/2007 11,154 11,446.00 11,431
1/31/2008 10,750 11,077.00 11,623
2/29/2008 10,466 10,799.00 11,639
3/31/2008 10,409 10,789.00 11,679
4/30/2008 10,757 11,189.00 11,655
5/31/2008 10,892 11,294.00 11,569
6/30/2008 10,933 11,322.00 11,560
7/31/2008 10,769 11,236.00 11,551
8/31/2008 10,746 11,221.00 11,660
9/30/2008 10,048 10,531.00 11,504
10/31/2008 8,406 9,139.00 11,232
11/30/2008 7,424 8,362.00 11,598
12/31/2008 6,868 8,115.00 12,030
1/31/2009 7,273 8,716.00 11,924
2/28/2009 7,213 8,784.00 11,879
3/31/2009 7,196 8,911.00 12,044
4/30/2009 8,080 9,686.00 12,102
5/31/2009 8,743 10,277.00 12,190
6/30/2009 9,311 10,727.00 12,259
7/31/2009 9,788 11,235.00 12,457
8/31/2009 10,073 11,490.00 12,586
9/30/2009 10,465 11,857.00 12,718
10/31/2009 10,657 11,923.00 12,781
11/30/2009 10,713 11,953.00 12,946
12/31/2009 11,005 12,305.00 12,744
1/31/2010 11,311 12,556.00 12,938
2/28/2010 11,318 12,592.00 12,987
3/31/2010 11,581 12,876.00 12,971
4/30/2010 11,755 13,065.00 13,106
5/31/2010 11,504 12,771.00 13,216
6/30/2010 11,424 12,711.00 13,423
7/31/2010 11,578 12,906.00 13,567
8/31/2010 11,631 12,950.00 13,741
9/30/2010 11,773 13,132.00 13,756
10/31/2010 11,933 13,338.00 13,805
11/30/2010 11,976 13,385.00 13,725
12/31/2010 12,107 13,551.00 13,577
1/31/2011 12,291 13,818.00 13,593
2/28/2011 12,385 13,882.00 13,627
3/31/2011 12,381 13,880.00 13,635
4/30/2011 12,436 13,969.00 13,808
5/31/2011 12,433 13,956.00 13,988
6/30/2011 12,384 13,904.00 13,947
7/31/2011 12,393 13,925.00 14,168
8/31/2011 11,789 13,311.00 14,375
9/30/2011 11,831 13,368.00 14,480
10/31/2011 12,119 13,755.00 14,496
11/30/2011 12,069 13,687.00 14,483
12/31/2011 12,115 13,757.00 14,642
1/31/2012 12,325 14,057.00 14,771
2/29/2012 12,410 14,166.00 14,767
3/31/2012 12,502 14,275.00 14,686
4/30/2012 12,576 14,380.00 14,849
5/31/2012 12,499 14,283.00 14,984
6/30/2012 12,572 14,381.00 14,989
7/31/2012 12,692 14,548.00 15,196
8/31/2012 12,817 14,711.00 15,206
9/30/2012 12,954 14,875.00 15,227
10/31/2012 12,970 14,922.00 15,257
11/30/2012 13,013 14,968.00 15,281
12/31/2012 13,108 15,086.00 15,259
1/31/2013 13,263 15,246.00 15,153
2/28/2013 13,272 15,278.00 15,229
3/31/2013 13,362 15,404.00 15,241
4/30/2013 13,482 15,496.00 15,395
5/31/2013 13,476 15,525.00 15,120
6/30/2013 13,388 15,433.00 14,886
7/31/2013 13,512 15,586.00 14,907
8/31/2013 13,505 15,580.00 14,830
9/30/2013 13,514 15,618.00 14,971
10/31/2013 13,621 15,732.00 15,092
11/30/2013 13,679 15,810.00 15,035
12/31/2013 13,732 15,883.00 14,950
1/31/2014 13,820 15,987.00 15,171
2/28/2014 13,840 16,015.00 15,252
3/31/2014 13,881 16,073.00 15,226
4/30/2014 13,868 16,091.00 15,355
5/31/2014 13,907 16,203.00 15,529
6/30/2014 13,977 16,296.00 15,537
7/31/2014 13,951 16,291.00 15,498
8/31/2014 13,975 16,316.00 15,669
9/30/2014 13,878 16,219.00 15,563
10/31/2014 13,903 16,261.00 15,716
11/30/2014 13,946 16,342.00 15,828
12/31/2014 13,735 16,137.00 15,842
Class A Class C
Senior -------------------------------------
Floating Average Average
Rate Annual Cumulative Annual Cumulative
Fund# Return Return+ Return Return+
- -------------------------------------
1 Year Return (3.50)% 0.20% (1.07)% (0.10)%
-------------------------------------------------------
5 Year Return 4.00% 26.50% 4.53% 24.80%
-------------------------------------------------------
10 Year Return N/A N/A 3.22% 37.35%
-------------------------------------------------------
Since Inception* 2.64% 28.85% 3.75% 82.59%
-------------------------------------------------------
# For the purposes of the table, it has been assumed that
the maximum sales charge of 3.75% with respect to Class
A shares was deducted from the initial investment in
the Fund and that the CDSCs with respect to the Class C
shares have been deducted, as applicable.
+ Cumulative returns do not include sales load. If sales
load had been included, the return would have been
lower.
* Inception date: Class A: 10/04/2006; Class C:
08/31/1998.
++ The S&P/LSTA Leveraged Loan Index (LLI) reflects the
market-weighted performance of U.S. dollar-denominated
institutional leveraged loan portfolios. The LLI is the
only domestic leveraged loan index that utilizes
real-time market weightings, spreads and interest
payments.
** The Barclays U.S. Aggregate Bond Index represents
securities that are U.S. domestic, taxable and dollar
denominated. The index covers components for government
and corporate securities, mortgage pass-through
securities and asset-backed securities.
Indices are not managed and an investor cannot invest
directly into an index.
The Fund operated as a closed-end investment company with
monthly repurchase offers until October 4, 2006, whereupon
it converted to an open-end investment company.
Information in the graph and table reflects performance of
the Fund as a closed-end investment company through
October 3, 2006, and the Fund may have performed
differently if it were an open-end investment company
prior to that date.
For the 12 month period ended December 31, 2014, the
SunAmerica Senior Floating Rate Class C returned (1.07)%
compared to 1.60% for the S&P/LSTA Leveraged Loan Index
and 5.97% for the Barclays U.S. Aggregate Bond Index. (The
performance data and graph do not reflect the deduction of
taxes that a shareholder would pay on fund distributions
or the redemption of fund shares.)
--------
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NO GUARANTEE OF
FUTURE RESULTS. Maximum Sales Charge: Class A: 3.75%; Contingent Deferred Sales
Charge (CDSC): Class C: 1.00% CDSC. The fund's daily net asset values are not
guaranteed and shares are not insured by the FDIC, the Federal Reserve Board or
any other agency. The investment return and principal value of an investment
will fluctuate so that an investor's shares, when redeemed, may be higher or
lower than the original cost. Current performance may be higher or lower than
that shown. Performance as of the most recent month end is available at
www.safunds.com
35
[LOGO] AIG Sun America
Mutual Funds
HARBORSIDE FINANCIAL CENTER
3200 PLAZA 5
JERSEY CITY, NJ 07311-4992
DIRECTORS CUSTODIAN DISCLOSURE OF QUARTERLY
Dr. Judith L. Craven State Street Bank and PORTFOLIO HOLDINGS
William F. Devin Trust Company The Fund is required to
Richard W. Grant P.O. Box 5607 file its com-plete
Stephen J. Gutman Boston, MA 02110 schedule of portfolio
Peter A. Harbeck VOTING PROXIES ON FUND holdings with the U.S.
William J. Shea PORTFOLIO SECURITIES Securities and Exchange
OFFICERS A description of the Commission for its first
John T. Genoy, President policies and proce-dures and third fiscal quarters
and Chief Executive that the Fund uses to on Form N-Q. The Fund's
Officer determine how to vote Forms N-Q are available
James Nichols, Vice proxies related to on the U.S. Securities
President securities held in the and Exchange Commission's
Katherine Stoner, Chief Fund's portfolio, which website at
Compliance Officer is available in the http://www.sec.gov. You
Gregory N. Bressler, Fund's Statement of can also review and
Secretary Additional Information obtain copies of the
Gregory R. Kingston, may be ob-tained without Forms N-Q at the U.S.
Treasurer charge upon request, by Securities and Exchange
Nori L. Gabert, Vice calling (800) 858-8850. Commission's Public
President and This in-formation is also Refer-ence Room in
Assistant Secretary available from the EDGAR Washington, DC
Kathleen Fuentes, Chief database on the U.S. (information on the
Legal Officer and Secu-rities and Exchange operation of the Public
Assistant Secretary Commission's website at Reference Room may be
Matthew J. Hackethal, http://www.sec.gov. ob-tained by calling
Anti-Money Laundering DELIVERY OF SHAREHOLDER 1-800-SEC-0330).
Compliance Officer DOCUMENTS PROXY VOTING RECORD ON
Donna McManus, Vice The Fund has adopted a FUND PORTFOLIO SECURITIES
President and policy that allows it to Information regarding how
Assistant Treasurer send only one copy of the the Fund voted proxies
Shawn Parry, Vice Fund's prospectus, proxy relating to securities
President and material, annual report held in the Fund's
Assistant Treasurer and semi-annual report portfolio during the most
INVESTMENT ADVISER (the "shareholder recent twelve month
SunAmerica Asset documents") to period ended June 30 is
Management, LLC shareholders with available, once filed
Harborside Financial multiple accounts with the U.S. Securities
Center residing at the same and Exchange Commis-sion,
3200 Plaza 5 "household." This without charge, upon
Jersey City, NJ practice is called request, by calling
07311-4992 householding and reduces (800) 858-8850 or on the
DISTRIBUTOR Fund expenses, which U.S. Securities and
AIG Capital Services, benefits you and other Exchange Commission's
Inc. shareholders. Unless the website at
Harborside Financial Fund receives http://www.sec.gov.
Center instructions to the This report is submitted
3200 Plaza 5 con-trary, you will only solely for the general
Jersey City, NJ receive one copy of the information of
07311-4992 shareholder documents. shareholders of the Fund.
SHAREHOLDER SERVICING The Fund will continue to Distribution of this
AGENT household the report to persons other
SunAmerica Fund share-holder documents than shareholders of the
Services, Inc. indefinitely, until we Fund is authorized only
Harborside Financial are instructed otherwise. in connection with a
Center If you do not wish to currently effective
3200 Plaza 5 participate in prospectus, setting forth
Jersey City, NJ householding, please details of the Fund,
07311-4992 contact Shareholder which must precede or
TRANSFER AGENT Services at (800) accompany this report.
State Street Bank and 858-8850 ext. 6010 or
Trust Company send a written request
P.O. Box 219373 with your name, the name
Kansas City, MO 64141 of your fund(s) and your
account number(s) to
SunAmerica Mutual Funds
c/o BFDS, P.O. Box
219186, Kansas City MO,
64121-9186. We will
resume individual
mailings for your account
within thirty (30) days
of receipt of your
request.
[GRAPHIC]
GO PAPERLESS!!
DID YOU KNOW THAT YOU HAVE THE OPTION TO
RECEIVE YOUR SHAREHOLDER REPORTS ONLINE?
By choosing this convenient service, you will no longer receive paper copies of
Fund documents such as annual reports, semi-annual reports, prospectuses and
proxy statements in the mail. Instead, you are provided with quick and easy
access to this information via the Internet.
Why Choose Electronic Delivery?
IT'S QUICK -- Fund documents will be received faster than via traditional mail.
IT'S CONVENIENT -- Elimination of bulky documents from personal files.
IT'S COST EFFECTIVE -- Reduction of your Fund's printing and mailing costs.
TO SIGN UP FOR ELECTRONIC DELIVERY, FOLLOW
THESE SIMPLE STEPS:
1 GO TO WWW.SAFUNDS.COM
2 CLICK ON THE LINK TO "GO PAPERLESS!!"
The email address you provide will be kept strictly confidential. Once your
enrollment has been processed, you will begin receiving email notifications
when anything you receive electronically is available online.
You can return to www.safunds.com at any time to change your email
address, edit your preferences or to cancel this service if you choose to
resume physical delivery of your Fund documents.
Please note - this option is only available to accounts opened through the
Funds.
FOR INFORMATION ON RECEIVING THIS REPORT ONLINE, SEE INSIDE BACK COVER.
DISTRIBUTED BY:
AIG CAPITAL SERVICES, INC.
This fund report must be preceded by or accompanied by a prospectus.
Investors should carefully consider a Fund's investment objectives, risks,
charges and expenses before investing. The prospectus, containing this and
other important information, can be obtained from your financial adviser, the
SunAmerica Sales Desk at 800-858-8850, ext. 6003, or at www.safunds.com. Read
the prospectus carefully before investing.
WWW.SAFUNDS.COM
SFANN - 12/14
[LOGO]
Sun America
Mutual Funds
Item 2. Code of Ethics
The SunAmerica Senior Floating Rate Fund, Inc. (the "registrant") has
adopted a Code of Ethics applicable to its Principal Executive and
Principal Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley
Act of 2002. During the fiscal year ended 2014, there were no reportable
amendments, waivers or implicit waivers to a provision of the Code of
Ethics that applies to the registrant's Principal Executive and Principal
Accounting Officers.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Directors has determined that William J. Shea,
the Chairman of the registrant's Audit Committee, qualifies as an audit
committee financial expert, as defined in Item 3(b) of Form N-CSR.
Mr. Shea is considered to be "independent" for purposes of Item 3(a)(2)
of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a)--(d) Aggregate fees billed to the registrant for the last two fiscal
years for professional services rendered by the registrant's principal
accountant were as follows:
2013 2014
------- -------
(a) Audit Fees $93,285 $97,016
(b) Audit-Related Fees $ 0 $ 0
(c) Tax Fees $12,722 $14,960
(d) All Other Fees $ 0 $ 0
Audit Fees include amounts related to the audit of the registrant's annual
financial statements and services normally provided by the principal
accountant in connection with statutory and regulatory filings. Tax Fees
principally include tax compliance, tax advice, tax planning and
preparation of tax returns.
Aggregate fees billed to the investment adviser and Adviser Affiliates (as
defined below in Item 4(e)) that are required to be pre-approved pursuant
to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X for the last two
fiscal years for services rendered by the registrant's principal accountant
were as follows:
2013 2014
---- ----
(b) Audit-Related Fees $ 0 $ 0
(c) Tax Fees $ 0 $ 0
(d) All Other Fees $ 0 $ 0
(e) (1) The registrant's audit committee pre-approves all audit services
provided by the registrant's principal accountant for the registrant
and all non-audit services provided by the registrant's principal
accountant for the registrant, its investment adviser and any entity
controlling, controlled by, or under common control with the
investment adviser ("Adviser Affiliates") that provides ongoing
services to the registrant, if the engagement by the investment
adviser or Adviser Affiliate relates directly to the operations and
financial reporting of the registrant. The audit committee has not
presently established any pre-approval policies and procedures that
permit the pre-approval of the above services other than by the full
audit committee. Certain de minimis exceptions are allowed for non-
audit services in accordance with Rule 2-01(c)(7)(i)(C) of Regulation
S-X as set forth in the registrant's audit committee charter.
(2) No services included in (b)-(d) above in connection with fees
billed to the registrant or the investment adviser or Adviser
Affiliates were approved pursuant to paragraph (c)(7)(i)(C) of Rule
2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the
preceding fiscal year by the registrant's principal accountant for
non-audit services rendered to the registrant, its investment adviser,
and Adviser Affiliates that provides ongoing services to the
registrant for 2013 and 2014 were $58,704 and $14,960, respectively.
(h) Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
Included in Item 1 to the Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Directors that were
implemented after the registrant last provided disclosure in response to
the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407)
(as required by 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this
Item 10.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this
report, under the supervision and with the participation of the
registrant's management, including the President and Treasurer, of the
effectiveness of the design and operation of the registrant's
disclosure controls and procedures (as defined under Rule 30a-3(c)
under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))). Based
on that evaluation, the registrant's management, including the
President and Treasurer, concluded that the registrant's disclosure
controls and procedures are effective.
(b) There was no change in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the
registrant's last fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially
affect, the registrant's internal contro1 over financial reporting.
Item 12. Exhibits.
(a) (1) Code of Ethics applicable to its Principal Executive and Principle
Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act
of 2002 attached hereto as Exhibit 99.406. Code of Ethics.
(2) Certifications pursuant to Rule 30a-2(a) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit
99.CERT.
(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the Sarbanes-
Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Senior Floating Rate Fund, Inc.
By: /s/ John T. Genoy
------------------------------------
John T. Genoy
President
Date: March 10, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ John T. Genoy
------------------------------------
John T. Genoy
President
Date: March 10, 2015
By: /s/ Gregory R. Kingston
------------------------------------
Gregory R. Kingston
Treasurer
Date: March 10, 2015